The U.S. has opened a $10-billion deal with a Saudi Arabian oil and gas company to diversify the oil exports it supplies to the Middle East.
U.S.-Saudi oil pipeline operator Saudi Aramco said Wednesday it will invest $3 billion in the U.K.-based subsidiary, the largest single investment in Saudi Aramcos production since it opened a pipeline to the U,S.
Aramco said in a statement that the investment is part of a plan to develop its own oil reserves.
The deal with Aramco’s Saudi unit is the largest U.N.-backed venture in Saudi Arabia.
It is part, however, of a broader plan to diversification by the Saudi state of the global oil supply chain, including the export of natural gas and the purchase of energy assets from non-Arab states.
“The company will invest over $2.7 billion in Saudi to help it achieve its business objectives in the United States, Canada, the United Kingdom, and other countries,” Aramco CEO Abdallah al-Mazrouei said in the statement.
“Aramcos plans to diversified and diversified business activities will continue to benefit all companies in the market.”
The company’s investment comes as the U.,S.
and Saudi Arabia seek to diversge their oil-supply chains.
The United States is the world’s biggest importer of crude oil, and the U.-Saudi pipeline will supply nearly 60% of the country’s total oil exports.
A spokesman for the U-S.
State Department did not immediately respond to a request for comment on the deal.
The United Arab Emirates has been a leading energy exporter to the United State, but the UPA government has also been trying to diversite the energy market by buying assets in the Gulf countries and other foreign countries.
The State Department said in March that the Saudi-UAE deal is a step toward “more effective cooperation between the U of A and Saudi Aramas” and “is expected to have a positive impact on the UAA’s economic competitiveness and on U.A. foreign policy objectives.”
The Saudi AramCo deal was announced by the UBA, Saudi Arabia’s powerful oil ministry, in an official statement.
The State Department’s news release said the deal is expected to boost the kingdom’s oil exports and create jobs.
Saudi Arabia and the United Arab States have fought a proxy war over the future of a massive Saudi-led blockade of the Strait of Hormuz, which is the lifeline for more than half of the world, with Iran.
Iran has said the blockade has failed to help the country recover from the 2011 Arab Spring uprising.