'The deal is extremely important for Lukoil,' a Lukoil Overseas spokesperson told MEED on 9 March. 'Saudi Arabia is a new country for us, a major oil state and an opportunity to gain access to the global market. It is also the obvious result of the agreement that was reached between President Putin and Crown Prince Abdullah last year.'

During a visit to Russia last September, officials from both countries signed a bilateral agreement that called for the 'implementation of joint projects and investment in the oil and gas industries', according to Russia's Foreign Affairs Ministry. Under the accord, the countries also agreed 'on the need for coordination and cooperation in oil policy with a view to achieving the stability and predictability of the world oil market'.

Only days before the gas deal was signed in Riyadh the Russian ambassador to Saudi Arabia publicly reiterated his government's support for the deal.

Both parties to the deal have previously asserted that politics did not play a role in the successful bid for the concession, saying that the win was based purely on technical and financial criteria. However, Lukoil's aggressive bid, which scored twice as high as its next competitor in the bidding process, has given rise to speculations that political interests have played some role in the outcome. Saudi Arabia has a strong interest in building a closer relationship with the largest crude producer outside OPEC and vice versa.

The deal with China's Sinopec, which on 7 March signed up for the 38,800-square-kilometre contract area B, is likely to have served similar interests as China is a major buyer of Saudi crude.

'No question in my mind that strengthening the economic relations will strengthen other areas of co-operation,' Petroleum & Mineral Resources Minister Ali Naimi said in the aftermath of the signing ceremony.

In addition to Lukoil and Sinopec, a consortium comprising Italy's Eniand Spain's Repsol YPFsigned up for a concession on 7 March. The European team was assigned area C, which covers about 51,400 square kilometres. The projects will be carried out in joint venture with Saudi Aramco, which will take a 20-per cent stake in each venture.