A Russian company signed Saturday the first ever contract, worth more than $100 million, to build an oil pipeline in Saudi Arabia with a Saudi company.Stroytransgaz, a construction arm of Russia's energy giant Gazprom, and Saudi Aramco concluded the contract in Dhahran. This is a breakthrough for Russian business to a totally new market, which is the most attractive in the Middle East.
The vice president of Saudi Aramco, Ali al-Ajmi, who signed the document from the Saudi side, welcomed the arrival of "a powerful Russian organization having its own advanced technology and a big working experience both in Russia and abroad."
He also said he hopes that this first ever contract of a Russian contractor to build oil and gas facilities in Saudi Arabia "will mark the beginning of a long-term mutually advantageous cooperation between the two companies."
Saudi Arabia plans to spend some $70 billion to implement oil and gas projects in the next five years, and the total volume of investment for the next 15-20 years is expected at $1 trillion.
Besides, the presence on the Saudi market will make easier for Russia the task of reaching the markets of neighboring Persian Gulf countries, who are also ready for big projects.
It is expected that the construction of the Sheyba-Abkayk oil pipeline, whose length exceeds 200 km (124 miles), will start in June and will be completed in 18 months. The construction will be conducted in the world's biggest sand desert, Rub al-Khali, known for its record high summer temperatures, quick sands and dust storms.
The project will be fully implemented by the Russian company, but workers from other countries would also be employed.
In February, Russian President Vladimir Putin made a two-day visit to Saudi Arabia, which has substantial clout in Islamic countries. It was the first visit by a Russian leader to the Arab nation, considering the two countries maintained no diplomatic relations for some 60 years.
State-owned Saudi Aramco is one of the world's largest oil and gas associations. It fully controls all reserves of hydrocarbons in Saudi Arabia, carries out their production, processing and transporting. In the rating of top 50 world oil companies, Saudi Aramco has for almost 20 years held the first place in terms of oil reserves, production, management quality and technology used.
Russia cuts oil export duty to $156.4 per ton from April 1
Russia has cut the oil export duty by $23.3 to $156.4 per metric ton from April 1. A decline in oil prices that began late last year and has continued into 2007 has prompted the government to adjust crude price and economic growth forecasts and cut oil export duties.
he oil export duty is adjusted every two months and is based on Russian Urals oil blend prices on world markets.
The previous crude export duty set
February 1 stood at $179.7 per metric ton.
The Finance Ministry earlier said the oil price forecast for 2007 had been reduced from $61 to $55 per barrel, and the forecasts would also be reduced from $56 to $53 per barrel in 2008, and from $52 to $50 in 2009.
