MOSCOW (MRC) -- SIBUR, the Russian Direct Investment Fund (RDIF) and Saudi Arabian Oil Company (Saudi Aramco) have signed a Memorandum of Understanding on possible cooperation and investment activities in Russia and Saudi Arabia, as per SIBUR's press release.
According to the Memorandum, the companies will estimate the potential of the petrochemical markets in Russia and Saudi Arabia and explore opportunities for future cooperation.
Dmitry Konov, Chairman of SIBUR’s Management Board, said, "Partnership with one of the largest petrochemical companies in Saudi Arabia will enable SIBUR to build up competencies, reach out to new sales markets and explore the promising Middle East market, a relatively new target for the Company. Combined expertise in implementing large-scale projects and entering new markets will further consolidate market leadership of both companies".
Kirill Dmitriev, CEO of RDIF, commented, "We are pleased to assist Russian business in developing relations with partners from Saudi Arabia, as well as in entering the extremely promising market of this country, which opens up additional export opportunities in other regions. Cooperation with Saudi Aramco, which has a strong resource base and experience in implementing large-scale investment projects for the high-quality production with high added value, will create all necessary conditions for effective implementation of mutual cooperation".
Amin Al-Nasser, President and CEO of Saudi Aramco, said: "This marks a new milestone in business relations and partnerships with our counterparts in Russia. The visit by The Custodian of The Two Holy Mosques King Salman bin Abdulaziz Al-Saud to Russia will further enhance ties and will foster collaboration among Saudi and Russian companies on various fronts."
A similar memorandum has been recently signed between SIBUR, Saudi Aramco and SABIC Industrial Investment Company (SABIC).
From SIBUR's side, Leonid Mikhelson, Chairman of the Board of Directors, and Dmitry Konov, Chairman of the Management Board, signed the document.
As MRC informed earlier, in late September 2017, Saudi Arabian Oil Co, the world’s biggest oil exporter, began talks with Sibur Holding, Russia’s largest petrochemical producer, about forming a joint venture to make synthetic rubber in the desert kingdom, according to two people with knowledge of the discussions, then said Bloomberg.
SIBUR is a vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and is a leader in the Russian petrochemicals industry. SIBUR operates 26 production sites in various regions of Russia. The Group employs 26,000 people. The Company sells its products to over 1,400 major customers engaged in the energy, automotive, construction, fast moving consumer goods (FMCG), chemical and other industries in approximately 70 countries worldwide.
Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
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