The Change Mariner

Saudis Strike Gas Deal With China, Russia

New York Times:

Saudi Arabian officials said on Sunday that they were seeking to strengthen ties with China and Russia after allowing energy companies from those countries to be among the first foreign businesses to explore Saudi natural gas reserves in more than three decades.

The Saudi contracts are with Lukoil, one of Russia's largest oil companies, and Sinopec, a large Chinese oil and gas producer. They were signed here on Sunday after protracted talks with several large American energy companies had collapsed over differences on terms and amid perceptions of a more distant relationship between Riyadh and Washington.

"There is no question cooperation in the economic field has the secondary benefit of increasing total cooperation," Ali al-Naimi, the Saudi oil minister, said after signing the agreement with Lukoil. Russia is the largest producer of oil among nations that are not part of the Organization of the Petroleum Exporting Countries.

Efforts by Saudi Arabia, the world's largest oil producer, have been exceptionally fruitful within and outside OPEC, with the price of oil climbing to more than $37 a barrel, the highest since the eve of the Iraq war.