Aramco deepens French ties with $3.7 billion deals

Saudi Aramco has signed agreements with French companies carrying a potential combined value of more than $3.7 billion, expanding cooperation in drilling equipment, specialised oilfield products and industrial artificial intelligence.

The agreements were announced during a Saudi-French investment roundtable in Paris on Monday, August 24, attended by Aramco president and chief executive Amin H. Nasser. They form part of a broader push by Saudi Arabia and France to strengthen investment and industrial partnerships during Crown Prince Mohammed bin Salman’s official visit to France.

Aramco did not disclose the identities of the French companies involved, leaving the division of the potential $3.7 billion value among individual contracts unclear. The package includes a corporate procurement agreement covering drilling equipment and a purchase agreement for oil country tubular goods, commonly known as OCTG.

OCTG products include specialised steel pipes used in oil and gas wells, including casing and tubing designed to withstand high pressure and demanding underground conditions. Such equipment is central to drilling programmes and the maintenance and expansion of upstream production capacity.

A separate memorandum of understanding involving Aramco Digital establishes a framework for possible cooperation in industrial artificial intelligence, virtual twin and digital twin technologies, as well as related applications for the oil and gas industry.

Digital twins use computer-generated representations of physical equipment, infrastructure or industrial processes. Operators can use them to monitor performance, simulate operating conditions, anticipate equipment failures and improve maintenance planning. Artificial intelligence can further strengthen such systems by analysing large volumes of operational data and identifying patterns that would be difficult to detect manually.

The agreements underline Aramco’s effort to combine conventional energy investment with greater use of digital technology across its operations. The company is seeking to improve efficiency, reliability and supply-chain resilience while developing technologies that can be deployed across production, processing and other industrial activities.

Aramco said the French partnerships would support projects, capability development, technology transfer and innovation. They are also intended to strengthen continuity across the company’s supply network, an increasingly important consideration for energy producers after years of disruption affecting industrial equipment, shipping and global manufacturing.

The agreements come weeks after Aramco reported adjusted net income of $33.4 billion for the second quarter of 2026 and $67.2 billion for the first half. Cash generated from operating activities reached $25.4 billion in the second quarter, while free cash flow was $12.3 billion.

The company has continued spending on major upstream and gas projects despite volatile energy markets. Its Zuluf crude oil expansion remains scheduled for completion in 2026, while expansion of the Fadhili Gas Plant and the second phase of the Jafurah gas development are expected to advance through 2027.

That investment programme increases Aramco’s requirement for drilling systems, tubular products and sophisticated industrial technology, giving additional commercial significance to long-term procurement arrangements with international suppliers.

The French agreements were unveiled against the backdrop of closer economic relations between Riyadh and Paris. Mohammed bin Salman and French President Emmanuel Macron held talks at the Élysée Palace during the visit and chaired the first meeting of the Saudi-French Strategic Partnership Council.

Business discussions accompanying the visit covered industries including manufacturing, transport, logistics, digital infrastructure and artificial intelligence. France has sought to attract greater Gulf investment, while Saudi Arabia is encouraging international companies to participate in projects linked to economic diversification and technology development.

The Paris meetings also produced a separate €6 billion Saudi-backed proposal for three theme parks near Cergy-Pontoise, northwest of the French capital, illustrating how bilateral investment cooperation is extending beyond traditional energy and defence ties.

For Aramco, France offers established expertise across engineering, industrial manufacturing, automation and digital technology. French companies have long operated across global energy supply chains, including oilfield services, equipment, petrochemicals and engineering.