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Saudi Aramco signed commercial cooperation agreements worth over $10 billion with US companies, which aim at consolidating its status as the “world’s preeminent energy and chemicals company,” it said in a statement on Wednesday.
The announcement comes as part of Aramco’s participation in the “Saudi-US CEO Forum” held in New York to promote bilateral business and cooperation between the two countries and coincides with the first official visit by Crown Prince Mohammed bin Salman to the US.
“We are also looking at cooperation in infrastructure, manufacturing and service industries; all of which the United States is distinguished for, and critical to managing and operating as well as growing an enterprise of Saudi Aramco’s scale,” said Amin Nasser, Saudi Aramco President and CEO.
According to Nasser, the commercial cooperation pacts reflect the range and ambition of Saudi Aramco’s interests, consolidating its status as the “world’s preeminent energy and chemicals company", and reflecting its role, not only as a major industrial company, but as a "pioneer of global development thinking".
As part of the panel discussion on "giga projects," Nasser said each of the mammoth undertakings— which involve financial costs running into billions—
consists of a system of interrelated projects, covering a broad scope of work and complexities.
“It takes an extended period of time for these mammoth undertakings to be completed, resulting in significant transformation in the areas where they are implemented, and offers enormous opportunities for action, partnerships and investment,” he added.
The CEO highlighted Aramco’s experience in the management and implementation of “giga projects,” starting with the Shaybah development project, which produces 1 million oil barrels per day; the Sadara petrochemicals project; the Jazan Refinery mega project; the King Salman International Complex Maritime Industries and Services project; and King Salman Energy Park (SPARK).
The 14 commercial collaborations agreed at the forum are listed below.
1) A corporate purchase agreement for downhole equipment and services, and wellhead and surface control equipment from Schlumberger Ltd.
2) A corporate purchase agreement for downhole equipment and services from Baker Hughes, A GE Company.
3) A corporate purchase agreement for downhole equipment and services, including well and rig services, from Halliburton.
4) An onshore drilling agreement with Saudi Aramco Nabors Drilling (SANAD).
5) A corporate purchase agreement for downhole equipment and a well testing services contract with Weatherford.
6) An offshore drilling services agreement with ARO Drilling.
7) A corporate purchase agreement for process automation systems, remote terminal units and control values with Emerson Electric Company.
8) A corporate purchase agreement for downhole equipment services with Texas Iron Works.
9) A contract for main automation contractor services for a new process control system (or upgrade of existing ones) with Honeywell International Inc.
10) An MoU to develop cybersecurity services with Raytheon Company.
11) An MoU to jointly explore the potential establishment of cloud services with Google Cloud.
12) An MoU to initiate a new relationship targeting multiple media future collaborations with National Geographic.
13) An MoU to conduct joint research in scientific knowledge and the environment, sharing initiatives, and cooperation in cultural, content and curatorial partnerships with Smithsonian Institution.
14) An agreement to advance joint research projects with Center for Strategic & International Studies.
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