Saudi Aramco signed preliminary cooperation agreements worth $10 billion with several leading oil services companies during Crown Prince Mohammed bin Salman’s visit to the US on March 27, The National reported.
Nearly half of the agreements are for the procurement of upstream oil equipment and services, signed with Schlumberger, Baker Hughes, Halliburton, and Weatherford. No further details of the agreements were given.
“It takes an extended period of time for these mammoth undertakings to be completed, resulting in significant transformation in the areas where they are implemented, and offers enormous opportunities for action, partnerships and investment,” Saudi Aramco chief executive Amin Nasser stated.
Another significant portion of the agreements were signed with Raytheon for cyber security services, and Google Cloud to explore the establishment of cloud services.
Various other agreements with National Geographic, Smithsonian, and Center for Strategic & International Studies, were also signed as a part of Saudi Arabia’s efforts to advance media, cultural, and research engagements.
Saudi Aramco is currently preparing for an initial public offering (IPO) that would list $100 billion (5%) worth of its shares on a global stock market. Aramco accounts for 13.4% of global oil production and is estimated to be worth $2 trillion.
The company is currently considering which of the New York, London, or Hong Kong stock exchanges to list its IPO with. Concerns over possible litigation weigh against the attraction of listing in New York.
“I would say litigation and liability are a big concern in the US,” Saudi energy minister Khalid Al-Falih told CNN correspondent John Defterios. “Quite frankly, Saudi Aramco is too big and too important for the kingdom to be subjected to that kind of risk.”