Saudi Arabia, Russia consider long-term oil cooperation

A joint organization for cooperation between OPEC and non-OPEC countries is likely to be established once the current deal to trim oil production expires by year-end, Russian energy minister Alexander Novak told Reuters on Tuesday.

His comments come after Saudi Crown Prince Mohammed bin Salman said last month that the Kingdom and Russia were working on a long-term pact, possibly 10 to 20 years long, to control oil output.

Novak said he had discussed long-term cooperation with Saudi energy minister Khalid Al-Falih, adding the current “mechanism of interaction” had proved effective.

“We are now thinking about a format for cooperation which could be for the longer-term, which would include the possibility of market monitoring, information exchange and if needed the implementation of some joint actions,” he said.

Novak revealed that though there were no concrete plans on long-term cooperation yet, new proposals for cooperation would be discussed when an OPEC ministerial committee tasked with monitoring the output cut deal meets in Jeddah this month.