During the visit to the Saudi Arabia Kingdom, President Trump signed contracts worth billions of dollars with Saudi Arabia’s oil and gas industry. The Saudi oil giant is getting set to launch a proposed world’s largest IPO is in line with U.S deals with Aramco.
GE with Saudi companies signed Memorandums of Understanding and reached agreements worth $15 billion. The deal worth billions of dollars is meant to strengthen bilateral business ties while the oil market maintains the shale-OPEC rivalry.
The oil deal between U.S and the Saudi Arabia Kingdom is coming after the deal worth $110 billion between the two on defence. Saudi Aramco signed a deal worth $50 billion with the U.S companies, and these are geared towards the digitalization of Aramco’s business activities, oilfield services, offshore and onshore oil rig development.
As Saudi Arabia prepares to launch the world’s biggest IPO, the Kingdom plans to sell 5% of its oil firms with an entry in one or more international markets. In the memorandums of understanding signed by the GE with Saudi companies is included a digital transformation of Aramco’s operation intending to make $4 billion in yearly productivity improvements.
The two companies in the deal also aim at evaluating the possibility of having new business across the energy value chain which will include enablers spread across downstream, upstream and midstream oil and gas business. This will also entail the development of Oilfield Services and Equipment (OFSE) production points.
In a bid to set up a joint firm in Saudi Arabia that would produce land rigs, drilling and rig equipment, as well offer some after sales services, the National Oilwell Varco signed memorandums of understanding with Aramco.