Saudi Aramco Signs Agreements Worth up to $90 Billion With US

Source Credit : Reuters

On Wednesday, Saudi Aramco announced the signing of 34 preliminary agreements with prominent U.S. companies, with a potential value of up to $90 billion. This initiative aims to strengthen commercial relations between Saudi Arabia and the United States, building on the momentum generated by President Donald Trump's recent visit to the kingdom.

The announcement was made a day after Riyadh pledged $600 billion in U.S. investments.

However, the majority of the partnerships announced by the state oil giant consist of memorandums of understanding that do not specify a financial value. Additionally, some of these agreements have been previously disclosed, including a notable contract to purchase 1.2 million tons of liquefied natural gas (LNG) annually over a 20-year period from NextDecade.

The agreements highlight Saudi Arabia's commitment to enhancing its energy partnerships and attracting foreign investment. This initiative is part of the Kingdom's broader strategy to balance its oil dominance with a focus on industrial and technological development, in alignment with the goals outlined in Vision 2030.

“The U.S. is really a good place to put our investment,” Aramco CEO Amin Nasser said on Tuesday at the U.S.-Saudi Investment Forum in Riyadh.

The forum coincided with former President Trump's four-day tour of the Gulf region, characterized by extravagant receptions and a series of significant business agreements, including a remarkable $142 billion in arms deals.

Aramco serves as the economic backbone of Saudi Arabia, generating a significant portion of the kingdom's revenue through oil exports. This vital contribution not only sustains the nation's economy but also supports its ambitious Vision 2030 diversification initiative, aimed at reducing dependence on oil and fostering sustainable growth across various sectors.

Its shares have fallen almost 9% this year.