Bloomberg and naturalgasintel.com feature a thorough rundown of all of the deals that were announced during the recent visit by President Donald Trump to Saudi Arabia. While the total remains unknown, the deals are estimated to be valued between $300 and $400 billion.
Aerospace, Arms and Defense – $110 billion
U.S. Department of Defense and Saudi Arabia’s Defense Ministry negotiated a package of about $110 billion in defense deals. Included in that figure is $6 billion for Saudi Arabia to buy four Littoral Combat Ships made by Lockheed Martin Corp. As Bloomberg notes, “[w]hile the package includes deals that were begun under President Barack Obama’s administration — and initial steps toward others that may take years to complete — the final letter of agreement on the Littoral Combat Ships is the highest-profile element.”
Also in the package, according to Bloomberg:
-Lockheed Martin signed an MoU for 150 S-70 Black Hawk helicopters to be assembled in Saudi Arabia
-Raytheon will establish Raytheon Arabia based in Riyadh
-General Dynamics agreed to localize design, engineering, manufacturing and support of armored combat vehicles
Energy – $50 Billion
ExxonMobil Saudi Arabia Inc.’s CEO Philippe Ducom and SABIC CEO Yousef Al-Benyan signed agreements at a business forum in Riyadh during the visit to conduct a detailed study of their proposed Gulf Coast Growth Ventures project in South Texas and begin planning for front-end engineering and design (FEED) work, according to naturalgasintel.com. “This agreement represents an important step in the progression of the Gulf Coast Growth Ventures project,” Ducom said. “We have a long and successful relationship with SABIC, which will be enhanced by this potential project that will create value for our companies and our communities.”
Also on Saturday separate memorandums of understanding were reached between Aramco and the top four oilfield service providers — Schlumberger Ltd., Halliburton Co., Baker Hughes Inc. and Weatherford International plc. Separate MOUs also were signed by Aramco and General Electric (GE), which is taking over Baker Hughes, as well as with Emerson, Honeywell International Inc., McDermott International Co., Nabors Industries Ltd. and Rowan Cos.
Vision 2030 – $15 billion
General Electric (GE) signed agreements worth a collective $15 billion in partnership with the Kingdom through a range of Memorandums of Understanding [MoU] and projects valued. Of that $15 billion, almost $7 billion are GE technology and solutions “aimed at creating a truly diverse and sustainable economic platform” for Saudi Arabia.
Investment in the United States – $20 billion
Investment giant Blackstone Group LP inked a nonbinding MOU with Saudi Arabia’s Public Investment Fund (PIF) for a $40 billion investment, equally split between the partners, for infrastructure projects principally within the United States. Blackstone Group LP is the world’s biggest private equity manager, and is eyeing more than $100 billion in infrastructure investments with a new strategy with Saudi Arabia’s PIF as the anchor.
