Saudi Arabia, Russia to Expand Oil Cooperation

[Wwagsthedog]

This has got to have an effect on our "security". The western oil companies mentioned in the last paragraph were all US led consotia. This accord will come as no surprise to the White House.

http://www.arabnews.com/?page=1§ion=0&article=30279&d=14&m=8&y=2003

Kingdom, Russia to Expand Oil Cooperation
P.K. Abdul Ghafour, Arab News Staff

JEDDAH, 14 August 2003 — Oil giants Saudi Arabia and Russia will sign a landmark energy accord early next month to strengthen cooperation in the petroleum and gas sectors, Asharq Al-Awsat reported yesterday.

“This agreement between the world’s largest exporters of oil is significant as this is the first time such an accord is being signed between them,” a Russian Energy Ministry official told the Arabic daily.

“There will be no specific deal as the agreement aims at strengthening cooperation between the two countries,” he added.

The Saudi Cabinet last week gave the go-ahead for the accord, which is likely to be signed during Crown Prince Abdullah’s upcoming visit to Moscow. The Cabinet meeting, chaired by Custodian of the Two Holy Mosques King Fahd, authorized Petroleum and Mineral Resources Minister Ali Al-Naimi to sign the agreement.

Saudi Arabia has the world’s largest oil reserves while Russia is the biggest exporter of oil outside the Organization of Petroleum Exporting Countries (OPEC).

The oil deal will be one of at least four cooperation agreements, expected to be signed during Prince Abdullah’s visit. A major trading partner of Saudi Arabia, Moscow cooperates with OPEC to achieve stability in the world oil market.

Al-Naimi and Russian Energy Minister Yusufov Igor Khanukovich met in Moscow last March and stressed the need to ensure the stability of the international oil market and prevent shortfalls in oil supplies. The two countries also reached an accord to maintain fair oil prices.

Al-Naimi said the Kingdom had been exerting great efforts to maintain a fair oil price of between $22 and $28 per barrel, the price sought by many oil-producing countries. This would be in the interests of producers and consumers and is a satisfactory price for international companies.

The minister said he also met with a number of representatives of Russian companies and listened to their perspectives on joint investment between the two countries and means of boosting economic ties.

In a recent statement, the chairman of the Oil and Gas Industrial Union of Russia, Yuriy Shafranik, said there were good prospects for mutually beneficial cooperation between his country and Saudi Arabia, especially in the oil and gas sectors.

Russian oil giant Gasprom expressed its desire to take part in the Kingdom’s gas initiative program when Western oil firms failed to respond favorably to Saudi demands. Russia’s petroleum giant Stroitangas entered into a joint venture with Saudi Oger to form a consortium for the construction of pipelines and oil and gas exploration in the Kingdom and other countries.

[QuietStorm]

1. Russia is also a member of the Caspian Consortium

I guess we have a pretty good oil alliance with Saudi Arabia and Russia. At least it would seem so.