Saudi Aramco signs deals with 18 leading Turkish companies

One day after Saudi Oil Company “Aramco” Informed Egypt that it Would Halt The Supply Of Oil Products (but it reportedly later resumed oil supplies to Cairo according to Anadolu Agency), Saudi Aramco signed today a series of Memorandum of Understanding (MoU) with 18 Turkish industrial enterprises,outlined the oil company on its official website.

According to Aramco, the new deals will add new potential partners to the company’s slate of future capital projects, promoting diversification and infrastructure enhancement in support of Saudi Vision 2030.

The signing ceremony was headed by H.E. Khalid Al Falih, the Minister of Energy, Industry and Mineral Resources, H.E. Berat Albayrak, the Turkish Minister of Energy and Natural Resources, Amin H. Nasser, the President and CEO of Saudi Aramco, and several Turkish business leaders.

Nasser said, “The MoUs will help further the development of business opportunities between the two countries and we look forward to working with Turkish firms on future projects. These efforts continue to underscore the commitment by Saudi Aramco towards achieving Saudi Vision 2030,” adding that because the Vision places special emphasis on localization, “we will double the percentage of locally-produced energy-related goods and services to 70% by 2021. This is a great opportunity for Turkish companies, particularly, to bring their expertise and invest in the Kingdom’s future.”

Future of the Egyptian deal

Weeks ago, Reuters reported that Egypt had not received October allocations of petroleum aid from Saudi Arabia, forcing its state oil buyer to rapidly increase tenders even amid a severe dollar shortage and growing arrears to oil producers.

On Tuesday, media reports announced that Saudi Aramco informed the Egyptian General Petroleum Corporation (EGPC), Egypt’s state oil company, that it would halt the supply of refined oil products to Egypt, without giving a timeline for the suspension or a reason

But on Wednesday,however, reports emerged Monday that Egypt has not yet received shipments, an Egyptian official confirms that Aramco’s oil products beginning to arrive, saying ” Saudi Aramco resumed supplying refined oil to Egypt one day after the Kingdom’s oil giant reportedly suspended oil products to its neighbor.”

Also, an Aramco official refuted the reports Monday and said the Saudi company is obligated to honor the contract and that the delay in shipments is temporary, according to the Saudi news website Al-Mnatiq.

According to Anadolu Agency, the shipments of refined oil and oil products have started to reach Egypt, Hamdi Abdulaziz, a spokesman for Egyptian General Petroleum Corporation (EGPC) said in a written statement.

Egypt and Saudi Arabia signed a $23 billion deal in April for Aramco to deliver 700,000 tons of petroleum products to Egypt every month for the next five years.