A memorandum of understanding (MOU) for international collaboration on natural gas projects was signed between Russia's Novatek and Saudi Aramco, the Saudi Arabian national oil company, Novatek announced on Monday.
The company said that the parties agreed to work on natural gas projects, including LNG supplies, the development of LNG markets, gas exploration and production projects, as well as research and technology development.
Novatek's Chairman Leonid Mikhelson said the company sees a wide array of exciting and mutually beneficial energy opportunities to cooperate with Saudi Arabia.
'Our company owns one of the world’s largest high-quality, low-cost conventional gas reserves base and has gained unique and valuable experience of developing LNG-projects in the Russian Arctic area. Novatek's strategy envisages rapidly growing our LNG production and attracting international partners, and, accordingly, we welcome the interest of such a globally important company as Saudi Aramco to jointly collaborate with us in gas markets,' he noted.
According to the U.S. Energy Information Administration, the Saudi government plans to monetize its vast natural gas reserves as it expands its petrochemical sector and natural gas-fired electric power generation.
Saudi Arabia had proved natural gas reserves of 303 trillion cubic feet as of Jan. 1, 2017, the fourth-largest in the world behind Russia, Iran, and Qatar.
Most of the natural gas fields in Saudi Arabia are associated with petroleum deposits or are found in the same wells as crude oil. Increased production of this type of natural gas remains linked to an increase in oil production.
Novatek is one of the largest independent natural gas producers in Russia.
Founded in 1994, the company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons.
The company’s upstream activities are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80 percent of Russia’s natural gas production and approximately 16 percent of the world’s gas production.
By Murat Temizer
Anadolu Agency
energy@aa.com.tr