Saudi Arabia is looking at unprecedented deals to acquire oil and gas assets in Russia, deepening ties between the world’s largest energy exporters as the Saudi king prepares to visit Moscow later this week.
Saudi Arabia and Russia produce almost a quarter of the world’s oil between them and led an historic agreement between the Organization of Petroleum Exporting Countries and other major suppliers last year to cut output and help end a global glut of crude. Direct Saudi investment in Russian assets would show continued commitment to cooperation between the two energy superpowers as Salman and Russian President Vladimir Putin prepare for talks that are likely to include whether to extend the pact on oil production limits.
Final agreements are subject to due diligence and are establishing that the deals don’t violate any international sanctions against Russia, one official said.
Investments with Eurasia and Novatek aren’t the only deals on the table. Saudi Arabian Oil Co., or Aramco, is in talks with Sibur Holding PJSC, Russia’s largest petrochemical producer, about forming a joint venture to make synthetic rubber in the desert kingdom, two people with knowledge of the discussions said last month.
Source: Bloomberg
