Several US companies signed deals with Saudi Arabian Oil Co, Saudi Armco as part of the estimated $200 billion in agreements during the recent US President’s visit. The state-owned oil company with US subsidiary Aramco Services Co. signed $50 billion worth of memorandums of understanding (MOU) agreements with US based firms. The MOUs require further developments to fully materialize into paying projects.
National Oilwell Varco Inc. and Saudi Aramco agreed to form a joint venture to manufacture high-specification rig and drilling equipment. The agreement also includes creating a training center for Saudi technicians to maintain and operate the JVs drilling technology.
The JV was announced in October 2016 to include the purchase of 50 onshore drilling rigs over 10 years was expanded.
McDermott International stated that its latest MOU with Saudi Aramco is valued at approximately $2.8 billion, and it in turn committed to expand its local supply chain, develop Saudi based fabrication and engineering facilities, and provide career training and development opportunities for skilled Saudi nationals.
Other firms with JVs included Schlumberger Ltd which will support Saudi talent development, Jacobs Engineering Group which will provide construction management services for social infrastructure projects across the Middle East and North Africa. General Electric, Exxon Mobil Corp, Lockheed Martin and Boeing also participated in the MOU process. In March, the Saudi Arabian delegation signed similar agreements in Asia.
The discussions also included establishing investment vehicles between the Saudi Public Investment Fund and US private equity firms to raise $40-100 billion for US infrastructure investment projects.