16 Jul 2019 10:27

RDIF, Saudi Aramco, PIF discuss manufacturing innovative oil-submersible equipment

MOSCOW. July 16 (Interfax) - The Russian Direct Investment Fund (RDIF), Saudi Aramco and the Saudi Public Investment Fund (PIF) are discussing a joint project to manufacture innovative oil-submersible equipment.

The approximate cost of the project is $659 million, according to the minutes from a meeting of the Russian-Saudi intergovernmental commission for trade, economic, scientific and technical cooperation that was held in early June in Moscow.

The implementation of the project is linked to planned investments in Novomet by the RDIF and its Saudi partners, the document indicates.

"An agreement was signed on the main conditions for the acquisition of a substantial minority stake in oilfield services company Novomet by the consortium of the RDIF, Saudi Aramco and PIF," the minutes state.

The Novomet Group manufactures oil-submersible equipment and complete oil extraction and water lift systems, and also provides services. The company's plant, with two production floors, and headquarters are located in Perm, and it has R&D centers in Perm and Moscow. The company also has branches in Azerbaijan and Kazakhstan.

Novomet's shareholders are six individuals who cofounded the company, and Baring Vostok and Russia Partners funds. In addition, a 30.76% stake is owned by Rusnano, which became a shareholder of Novomet in 2011 with an investment of about 4 billion rubles, but is now ready to part with its shares. This is the stake that the consortium of RDIF, Saudi Aramco and PIF is looking to buy.