King Salman's landmark visit to Moscow heralds a new era

King Salman's landmark visit to Moscow heralds a new era

King Salman's landmark visit to Moscow heralds a new era

King Salman is planning "unprecedented" oil and gas deals, cementing closer ties between the two energy giants, including investments in the proposed Novatek/Total Arctic LNG II project and in Russian contractor Eurasia Drilling, Bloomberg reports.

Saudi Arabia's ministry of information called the visit by 81-year-old Salman "historic" as it would be the first official visit to Russian Federation by a Saudi monarch.

King Salman bin Abdulaziz will kick off on Thursday his first official visit to Russia where he will discuss with Russian President Vladimir Putin joint cooperation between the two countries, in addition to regional and global issues.

Saudi Arabia has voiced its interest in launching ventures in Russia's Arctic oil and gas fields over nearly a decade.

"Minister of Energy, Industry and Mineral Resources of Saudi Arabia has already been to Moscow and St. Petersburg several times, he already had talks with around ten leading Russian energy companies and they already have certain developments, projects, plans for cooperation", he said.

"A meeting between Putin and King Salman will mark an important stage in bilateral relations", he said.

Saudi Arabia, the Arab world's largest economy and Opec's largest oil producer, is moving ahead full throttle.

The study's authors wrote, "Companies will be able to demonstrate meaningful capital efficiency, measured by the leveraged full cycle ratio, only if the West Texas Intermediate oil price is above $50 per barrel and the Henry Hub natural gas price is at least $3.00 per million British thermal units".

Russia, which sits on the world's second-largest gas reserves can help the kingdom meet its growing demand for electricity and Riyadh, which is set to take Aramco public next year in what is slated to be the largest listing of its kind, is a welcome investor in Moscow.

Economy declined 2.3% from April to June over the years first three months, impacted by the budget cuts done due to oils lower prices. But as authorities seek to reduce the kingdom's reliance on oil, they're also leading efforts among OPEC members and some other major producers to bolster prices by cutting output.

"We are not at the point where the oil price is safe", he warned.

Related news