Saudi Arabian Oil Co., better known as Saudi Aramco, has clinched commercial oil and gas partnerships with 14 U.S. energy companies and other global operators that combined are worth $10 billion-plus, the state-owned operator said.
At the recent Saudi-US CEOs forum in New York City, designed to promote bilateral business and cooperation, agreements were reached with several big oilfield service companies including ARO Drilling, Baker Hughes, a GE Company, Halliburton Co., Honeywell International Inc., Saudi Aramco Nabors Drilling (SANAD), Schlumberger Ltd., Texas Iron Works and Weatherford International Ltd. Other partnerships were inked with Google, National Geographic and the Smithsonian Institute.
The latest round of dealmaking follows transactions secured last year with U.S. energy firms by Aramco during President Trump’s trip last May to the Middle East and Europe. Contracts secured at that time, which included U.S defense and healthcare industries, were worth an estimated $50 billion.
“We have enjoyed a long and successful relationship with our U.S. partners since the discovery of oil in Saudi Arabia more than 80 years ago,” Aramco CEO Amin H. Nasser said in a speech at the New York City forum. “The growth of Saudi Aramco`s operations and the strategic roll out of Saudi Vision 2030 will provide multiple opportunities for strengthening our collaboration and partnerships, not only in oil and gas, refining and chemicals sector, but also in digital technologies and environmental conservation, climate change and the development of innovation through the establishment of relations with a group of leading American institutions in the academic, research and cultural, which are among the best in the world.”
The Vision 2030 program was conceived by Deputy Crown Prince Mohammed bin Salman to move the Kingdom away from oil and make it more resilient to price shocks like the one in 2014. Saudi Arabia is the lead member of the Organization of the Petroleum Exporting Countries.
“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,” Nasser said.
Aramco agreed to purchase downhole equipment and services, along with wellhead and surface control equipment from Baker Hughes, Halliburton, Schlumberger, Texas Iron Works and Weatherford. SANAD agreed to an onshore drilling agreement, while ARO reached an offshore drilling services agreement. Honeywell secured a contract for main automation contractor services for new or upgraded process control systems.
Aramco also secured memorandums of understanding (MOU) with Raytheon Co. to develop cybersecurity services; Google Cloud to jointly explore establishing services; National Geographic to target multiple media future collaborations; Smithsonian for joint research into scientific knowledge and the environment; and Center for Strategic & International Studies to advance research projects.