News : Business : Russian company to build Saudi pipeline

Russian company to build Saudi pipeline

Sunday, 1-Apr-2007 01:25AM EDT
Story from United Press International. Copyright 2007 by United Press International (via ClariNet)

DHARAN, Saudi Arabia, April 1 (UPI) -- A subsidiary of Russia's national energy company has signed a $100 million contract for construction of an oil pipeline in Saudi Arabia.

Stroytransgaz, which operates Gazprom's construction business, worked out final details of the agreement Saturday with Saudi Aramco in Dharan, the Novosti news agency reported.

Ali al-Ajmi, vice president of Saudi Aramco, said "a powerful Russian organization having its own advanced technology and a big working experience both in Russia and abroad" would be helpful to Saudi Arabia.

The 200-mile Sheyba-Abkayk pipeline is to cross the Rub al-Khali, one of the most difficult environments in the world with punishing summer temperatures, quicksand and dust storms. Work is expected to start in June with completion expected in 18 months.

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