Saudi Aramco has agreed to buy Rusnano’s 30.76% stake in Russian service provider Novomet in a deal that is expected to take place at the start of 2020, once it has passed the necessary regulatory approvals.

The deal was agreed at the Saudi-Russian CEO Forum in Riyadh and was overseen by Russian President Vladimir Putin and King Salman Bin Abdulaziz Al Saud of Saudi Arabia. The confirmation agreement was signed by Saudi Aramco, the Public Investment Fund of Saudi Arabia (PIF), the Russian Direct Investment Fund (RDIF) and Rusnano.

Saudi Aramco has also entered into nine Memorandum of Understanding (MoU) agreements with other Russian companies as part of its upstream strategy. These include a technical knowledge for oil applications agreement with Gazprom Neft and to develop a manufacturing facility for downhole drilling motors and drilling tools with Integra.

Saudi Aramco CEO Armin Nasser said: “Today’s agreement is expected to enable future investments in both Saudi Arabia and Russia that come under the framework of the Saudi – Russian Energy Co-investment Platform through Saudi Aramco, PIF and RDIF, targeting to promote investments in the energy sector in both Saudi Arabia and Russia.

“We look forward to expanding our mutual interests in the energy sector through this important co-investment platform with Russian companies.”

Previously at the Saudi-Russian CEO Forum, Saudi energy minister Prince Abdulaziz bin Salman announced that Saudi Aramco’s oil production will recover in October-November 2019 following the drone attacks on its installations on 14 September.

Saudi Aramco

Saudi Aramco is regarded as the most profitable company in the world, with a net income of $111.1bn in 2018. The company is also closing in on its first-ever initial public offering (IPO) at the end of 2019.

However, it was recently revealed by the Guardian that Saudi Aramco is the leading polluter in the world out of 20 fossil fuel companies. It has produced 59.26 billion tonnes of CO2 since 1965, 4.38% of the world’s total.