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The U.S. and Saudi Arabia signed a civilian nuclear cooperation agreement Wednesday that clears the way for American companies to participate in the kingdom's planned nuclear energy program while strengthening economic and strategic ties between the longtime allies.
Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman signed the 123 Agreement and a related bilateral safeguards agreement, the Energy Department announced.
The deals establish the legal framework for U.S.-Saudi civilian nuclear cooperation and set standards for nuclear safety, security, and nonproliferation.
The department said the agreement will expand opportunities for American companies to supply nuclear technology and services to Saudi Arabia, supporting U.S. jobs and domestic supply chains while helping the kingdom meet growing energy demand.
"These agreements reflect our two nations' shared commitment to strengthening U.S.-Saudi commercial relations, delivering prosperity at home and security to our allies abroad," Wright said in a statement.
He said the agreements uphold "the highest standards of nuclear safety and nonproliferation" while relying on American nuclear technology and expertise.
The administration will now send the agreement to Congress for review under Section 123 of the Atomic Energy Act of 1954. Such agreements are required before the United States can export nuclear reactors, fuel or other significant nuclear technology to another country for civilian use.
The administration said the agreement is intended to expand U.S. nuclear exports, create American jobs, strengthen U.S. energy and national security and reinforce global nuclear nonproliferation standards.
The signing follows months of negotiations after Wright said in April that Washington and Riyadh were working toward a formal 123 Agreement, calling it an important step toward a long-term civil nuclear partnership.
Saudi Arabia has sought to develop a civilian nuclear power industry as part of its Vision 2030 economic diversification plan.
Saudi officials have said nuclear power will help meet rising domestic electricity demand while letting the kingdom export more of its oil production.
The agreement also comes as the U.S. seeks to compete more aggressively with China and Russia, both of which have expanded exports of civilian nuclear technology and pursued nuclear power projects around the world.
The agreement is expected to receive scrutiny on Capitol Hill, where some lawmakers and nonproliferation advocates have questioned the safeguards governing Saudi Arabia's nuclear ambitions.
Administration officials have said the accord preserves longstanding U.S. nonproliferation standards while strengthening America's position in the global civil nuclear market.
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