Public Joint Stock Company Stroytransgaz - Saudi Aramco: first ever contract signed
Saturday, March 31, 2007
Executives of Russian PJSC Stroytransgaz and Saudi Arabian state oil company Saudi Aramco have signed a contract on the construction of an oil pipeline in East province of Saudi Arabia.
On behalf of PJSC Stroytransgaz the contract was signed by First vice-president of foreign and special construction department Mr. E.A.Lavrentjev. From Saudi Customer the document was signed by Vice-president of project management Mr. Ali al-Adjmi.
Ceremony of signing has taken place in Saudi Aramco’s headquarters in Dhahran city located on Persian Gulf coast.
“Conclusion of the first contract in the history of our mutual relations with PJSC Stroytransgaz is important and pleasant event for us”, said at the ceremony Vice-president Ali al-Adjmi. “We are interested in such well-established contractors as Stroytransgaz which possesses modern technologies and has extensive experience of oil-and-gas projects construction in Russia and abroad. We hope that our cooperation will have long-term character and implementation of the project will make considerable contribution to solution of problems which we are facing. At the same time it will make contribution to development of Saudi-Russian relations in view of agreements achieved between the King of Saudi Arabia His Majesty Abdalla Ben Abdelaziz and the President of Russia Mr. Vladimir Putin during his recent visit to our country”.
In return Mr. Lavrentjev noted, that Stroytransgaz was one of the first Russian companies which have made the strategic decision on entry to oil-and-gas market of Saudi Arabia and have done all what was necessary to become one of its members. Signing of the contract sums up former efforts and means the beginning of a new stage of practical work of the Company on Arabian Peninsula.
According to the signed contract, which price exceeds 100 million US dollars, PJSC Stroytransgaz should in 18 months construct the 217 kilometer long pipeline from Sheiba field in Rub' al Khali desert near to border with United Arab Emirates towards large oil refining center of Abkeyk. New pipe run will be parallel to already existing oil pipeline that will allow increasing quantities of transported oil. The commencement of construction is planned for the middle of 2007.
As is known, in September, 2003, during the official visit to Russia of then Crown Prince of Saudi Arabia His Highness Abdalla Ben Abdelasiz an Agreement on cooperation in the field of oil and gas between two countries has been signed.
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State company Saudi Aramco is the largest oil company in the world. In the rating of 50 world leading oil companies drawn up by American rating agency “Petroleum Energy Weekly” Saudi Aramco throughout the years stands at first position on petroleum reserves, its extraction, quality of management, applied technologies, etc. It totally controls country’s energy reserves and acts as the voice of the state in all matters connected with prospecting, exploration, production, processing and transportation of hydrocarbons.
