Saudi Arabia seeks to further reduce oil stockpiles next month

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Russia is seeking to finalise multi-million-dollar investment deals with Saudi Arabia in the next three months including partnerships with state oil giant Aramco, Russia's top state investment officer said on Wednesday.

The move is aimed at strengthening energy ties between the two major oil producers.

"We will see how the IPO process progresses but we see significant interest to invest in the Aramco IPO, from Russian Federation, from China".

Aramco's IPO was viewed as the centrepiece of Saudi Arabia's plan to wean its economy off oil, with the nation's government estimating the share sale could see the company valued at around $2trn. They reached new energy agreements, including one relating to LNG. While Al-Falih said that he did not rule out buying LNG from Russian Federation, at present he did state that it was not the most economical option.

He added that Russian Federation is supporting Saudi Arabia's "Saudi Vision 2030" economic plan with direct investments.

Sibur, Russia's largest producer of petrochemicals, is building a petrochemicals facility in the kingdom.

Kirill Dmitriev, the sovereign wealth fund's head, has already said that Russian pension funds are considering participation in the Saudi Aramco IPO, which is potentially the world's biggest, valuing the group at up to €2 trillion and raising more than €100bn.

Novak said that during the meeting, bilateral relations in all fields were discussed and productive discussions were held on energy. The fund's total committed capital is US$6 billion.

OPEC will soon discuss with Russian Federation a new way to measure oil inventories as producers meet to review their supply-cuts agreement that expires at the end of 2018.

Meanwhile, Saudi Arabia is looking from Russian Federation to East Africa and the USA for natural gas assets as state-owned Saudi Aramco searches for means to meet rising domestic demand.

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