Falih Eyes Closer Russian Ties, In Opec+ As Well As Aramco Downstream

Saudi-Russian commercial ties have deepened considerably since 2016 when the pair led the way towards the December 2016 Opec+ production agreement. With Russian help, Saudi Arabia wants to become a world leader in oil refining, petrochemicals and LNG production.

Saudi energy minister Khalid al-Falih is looking to build on recent close cooperation with Russia in managing the oil market with investments to boost the Saudi downstream.

“Given the success of two years’ coordination between KSA and Russia,” Mr Falih said in a 22 October interview with Russian news agency Tass, “we need to establish the framework for long-term coordination.” The current Opec+ deal expires at the end of 2018, but Mr Falih wants this to be replaced by an open-ended deal “that does not expire after 2020 or 2021.”

Mr Falih previously announced in February that he expected the Opec+ deal to continue into 2019. At the time he also suggested changing the methodology to one that would assess the market when it was as closer to rebalance, which was the original agreement’s stated goal ( MEES, 2 February ). (CONTINUED - 1697 WORDS)

DATA INSIDE THIS ARTICLE

table Aramco Refining And Petchems Integration