Saudi oil giant signs agreements with American companies

Saudi oil giant signs agreements with American companies

THE Saudi Arabian Oil Company, more commonly known as “Aramco”, announced the signing of three Memoranda of Understanding (MoUs) with leading American companies this week.

The MOUs were signed during the visit of US Secretary of Energy, Jennifer Granholm, to the oil-rich kingdom witnessed by high-ranking Saudi officials.

The three U.S. companies consist of Aeroseal, Spiritus, and Rondo which seek to jointly develop potential lower-carbon energy solutions with Saudi Arabia.

Under the agreement, Aramco will help Aeroseal expand and commercialize its innovative technology designed to enhance the efficiency of gas pipelines. Touted as. one of the world’s leading climate tech innovators, Aeroseal will focus on the deployment of its technology specializing in leak mitigation solutions.

The Saudi oil giant also plans to explore opportunities in direct air capture (DAC) technology, a process of capturing carbon dioxide directly from the atmosphere, a critical step in reducing the impact of climate change and lessening energy needs.

The agreement also focuses on the potential deployment of heat battery technology across Aramco’s global facilities to help reduce operating costs and emissions. The technology aligns with the oil giant’s goals of enhancing energy efficiency and lowering its carbon footprint.

Aramco was hailed as the second-largest company in the world by revenue in 2022 and has the largest offshore oil field on the planet.

Meanwhile, Saudi Arabia was ranked the world’s largest oil exporter in the first half of 2024. The oil-rich Kingdom plans to achieve net zero greenhouse gas (GHG) emissions by 2060 and derive 50% of its electricity capacity from renewable sources by 2030.

Aramco signed the deals ahead of the anticipated visit of U.S. Secretary of State Antony Blinken to Saudi Arabia this weekend to talk about a peace deal with Israel and military operations in Rafah.


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