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Saudi Aramco said to finalise Russian pumping equipment deal

Novomet agreement could reportedly see Aramco buying Russian-made equipment for the first time

A deal has reportedly been finalised between oil giant Saudi Aramco and Russia's Novomet [representational image of Aramco's Abha bulk plant].
© Saudi Aramco
A deal has reportedly been finalised between oil giant Saudi Aramco and Russia's Novomet [representational image of Aramco's Abha bulk plant].

Finalisation has been achieved on a deal that could see Saudi Aramco purchasing equipment from a Russian company for the first time, with the support of Russia’s government-backed sovereign wealth fund.

Russia Direct Investment Fund (RDIF) and its Saudi partners have finalised “the main parameters” of a procurement deal between Novomet and Saudi Aramco, the kingdom’s state-owned oil giant.

Commenting on the agreement on 25 December, 2018 according to Russia’s state-held news agency, Tass, Novomet chief executive officer, Krill Dmitriev, said: “Saudi Aramco, which is the world’s biggest oil company, is a very important partner.

“We have finalised the main parameters of the Novomet deal to supply Russian-made pumping equipment to Saudi Aramco and other companies, and Saudi Aramco will become an investor in this project.”

READ: Saudi Crown Prince unveils Aramco energy megaproject Spark

Various elements of Saudi Aramco’s investment in Russia are being reviewed at present, including the Arctic LNG-1 plant, as well as various other petrochemicals projects.

“This is a chance to attract billions of dollars from Saudi Aramco into Russia,” Dmitriev added.

Tass reported that Saudi Arabia’s Minister of Energy, Industry, and Mineral Resources, Khalid al-Falih, said earlier that Aramco and Saudi Arabia’s sovereign wealth fund – the Crown Prince-led Public Investment Fund – were “close to investing in the Russian oil production equipment manufacturer Novomet and Eurasia Drilling Company”.

The Russian report further stated that Saudi partners “are very interested in Novomet”.

READ: Chemicals firm Lanxess completes $1.3bn sale to Saudi Aramco

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Apr 21, 2019