Saudi Aramco and Russian petrochemical producer Sibur Holding are in talks to potentially form a joint venture to make synthetic rubber in the kingdom.
The two companies are expected to sign a memorandum of understanding (MoU) for the project next month when Saudi King Salman Bin Abdulaziz visits Russia, sources said, according to Bloomberg.
The agreement will be the first project with a Russian company that will not involve energy exploration or production. Talks are said to be in the initial stages.
Earlier this year, the oil giant won approval from the government to set up two new companies that would develop and operate an energy industrial city in the kingdom.
In August, Saudi Aramco signed a contract with Saudi Archirodon Company and Huta Hegerfeld AG Saudia Company to develop King Salman International Complex for Maritime Industries and Services in Ras Al-Khair.
The contract was reportedly the first major undertaking for the maritime complex where contractors would conduct dredging and reclamation of approximately 37 million cubic metres of fill. It will be completed by 2020.