During President Donald Trump’s visit to the Kingdom billions of dollars worth of deals were signed by U.S. companies with Saudi Arabia’s oil and gas industry. Memorandums of understanding (MoU) and agreements worth a total of US$15 billion were signed by General Electric with them. Saudi Aramco also signed an estimated US$50 billion worth of deals with U.S. companies, which also will implement into the digitalization of Aramco’s offshore and onshore business, with the goal of generating US$4 billion in annual productivity improvements.
There are also opportunities of new business developments in that: across the energy value chain. That will cover all the streams of oil and gas businesses, including the development of Oilfield Services and Equipment (OFSE) manufacturing hubs.
National Oilwell Varco signed memorandums of understanding with Aramco to set up a joint venture in Saudi Arabia. They would manufacture high-specification land rigs, rig and drilling equipment. They will also include certain aftermarket services into their service plans. Not only that, but Aramco also signed memorandums of understanding with drilling services provider Rowan to develop designs of jack-up rigs which have been planned to be produced in Saudi Arabia. That tops it for Aramco with onshore drilling rigs by signing memorandums of understanding with another company, Nabors Industries, which is also a follow-up of October 2016.
That all doesn’t just involve Saudi area only. ExxonMobil, the world’s largest oil company which reported a 122% surge in profits in its latest quarter, and Saudi Basic Industries Corporation (SABIC) signed an agreement to carry out a detailed study of a U.S. petrochemical project in San Patricio County, Texas, along with planning front-end engineering and design work. The project is one of 11 major oil projects in U.S.
Aramco has a desire and plans to expand its businesses in the U.S. For instance, in May 1 it did take full control over the largest U.S. refinery at Port Arthur, Texas.
There is a lot of competition in the new oil world. Some companies do have their own hard times and quite difficult times. Like Chevron lately, which ended last year $431 million in the red. Yet, with good thinking there is always a way to stay focused and stay afloat, to have aim in growing sales and profits. Our web site: https://skyledllc.com
Andrey Avramenko, CEO of Skyline Energy Development