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Updated April 9, 2019
Prospects for Enhanced U.S.-Saudi Nuclear Energy Cooperation
Overview
So-called “123 agreements” must include the terms,
U.S. companies have provided proposals to Saudi
conditions, duration, nature, and scope of cooperation, as
authorities in relation to a planned tender for nuclear reactor
well as meet several nonproliferation criteria. The President
construction in Saudi Arabia in conjunction with the
must make a written determination “that the performance of
kingdom’s nascent nuclear energy program. In recent years,
the proposed agreement will promote and will not constitute
Saudi Arabia has entered into agreements concerning
an unreasonable risk to, the common defense and security.”
possible civil nuclear cooperation with several countries
The AEA requires Congress to review a 123 agreement for
(Table 1, right). In July 2017 the Saudi cabinet approved a
two time periods totaling 90 days of continuous session. If
National Project for Atomic Energy, including plans to
the President has not exempted the agreement from any
build large and small nuclear reactors for electricity
requirements of Section 123(a), it becomes effective at the
production and desalination amid a larger effort to diversify
end of the second period unless, during that time, Congress
the Saudi economy and expand the use of renewable
adopts a joint resolution disapproving the agreement and
energy. Saudi authorities expressed hopes of signing
the resolution becomes law.
contracts for reactor construction in 2018, but did not do so.
Table 1. Saudi Nuclear Cooperation Developments
Depending on its nature and extent, future U.S.-Saudi
nuclear cooperation may require executive branch
March
Argentine-Saudi joint nuclear R&D venture agreed.
authorizations and/or congressional approval of bilateral
2015
Saudi-South Korean mutual nuclear cooperation
agreements. Saudi plans also are fueling debate in Congress
agreements signed, including an MOU on building
over regional nuclear proliferation and security dynamics.
two small reactors for Saudi water desalination.
June 2015
KA CARE signs a nuclear energy cooperation
Saudi Arabia holds 16% of the world’s proven reserves
agreement with state-owned Rosatom of Russia.
of crude oil, has the world’s fourth-largest reserves of
Agreements signed with France on cooperation,
natural gas, and is the largest oil consumer in the
including EPR reactor feasibility studies.
Middle East, with oil consumption for electricity
generation projected to increase. Oil and natural gas
January
Saudi Arabia and China memorandum of
generate 40% and nearly 60% of the kingdom’s
2016
understanding signed regarding cooperation in the
electricity, respectively. The Saudi Ministry of Energy,
possible future construction of a high-temperature
Industry, and Mineral Resources and the King Abdullah
gas-cooled reactor (HTGR) in the kingdom.
City for Atomic and Renewable Energy agency (KA
October
Saudi Arabia and Kazakhstan sign a nuclear
CARE) is considering proposals for the construction
2016
cooperation agreement focused on nuclear fuel.
of two reactors to generate 2.9 GWe of electricity.
March –
Agreement signed for Chinese-Saudi feasibility
August
study of HTGR construction in Saudi Arabia. KA
U.S.-Saudi Nuclear Cooperation
2017
CARE officials and experts visit China to begin
HTGR study implementation planning. China
In May 2008, the United States and Saudi Arabia signed a
National Nuclear Corporation (CNNC) and the
Memorandum of Understanding (MOU), which stated the
countries’ intentions to cooperate on
Saudi Geological Survey sign agreements on
nuclear activities in
cooperation on uranium exploration.
the fields of medicine, industry, and electricity production.
Previous Administrations had explored a civil nuclear
December
Russia’s Rosatom and KA CARE sign implementing
energy agreement with Saudi Arabia. Trump
2017
agreement related to small and medium reactors,
Administration officials have stated that discussions with
personnel and fuel management.
Saudi Arabia about a nuclear cooperation agreement are
“
November
KA CARE signs contract with WorleyParsons to
underway.”
2018
provide project management consultancy services
U.S. Nuclear Cooperation Requirements
for the National Project for Atomic Energy.
Section 123 of the Atomic Energy Act of 1954, as amended
January
KA CARE announces it has received reactor bid
(AEA, 22 U.S.C. 2011 et seq.), requires nuclear cooperation
2019
proposals from entities in the United States, Russia,
agreements for significant nuclear cooperation with foreign
France, South Korea, and China.
governments. Such cooperation includes the transfer of
certain U.S.-origin nuclear material subject to licensing for
April 2019
Argentina’s IAEA Envoy said “Saudi Arabia will have
commercial, medical, and industrial purposes; the export of
to move to a ful scope comprehensive safeguards
reactors and critical reactor components; and other
agreement with subsidiary arrangements” before an
commodities under Nuclear Regulatory Commission export
Argentinian-designed research reactor is fueled.
licensing authority.
Source: Official statements and media reports.
https://crsreports.congress.gov
Prospects for Enhanced U.S.-Saudi Nuclear Energy Cooperation
The Department of Energy (DOE) in 2017 expeditiously
enrichment or reprocessing facilities, would be required to
granted a “Part 810 authorization” (per 10 C.F.R. 810) for
be under International Atomic Energy Agency (IAEA)
U.S. companies to engage in discussions, including
safeguards. IAEA officials completed a nuclear
marketing, with the Saudi government regarding its civil
infrastructure review in Saudi Arabia in 2018 and issued a
nuclear program. Section 57(b)(2) of the AEA allows for
final report in January 2019. In March 2019, IAEA Director
limited cooperation related to the “development or
General Yukiya Amano said, “We’re encouraging all
production of any special nuclear material outside of the
countries to conclude and implement an additional protocol
United States” if that activity has been authorized by the
and that includes Saudi Arabia.” IAEA safeguards present a
Secretary of Energy following a determination that it “will
significant hurdle to the development of nuclear weapons.
not be inimical to the interest of the United States.” A 123
The U.S.-UAE Nuclear Cooperation Precedent
agreement is not necessary for such authorizations, which
mostly involve unclassified nuclear technology transfer and
A commitment to forgo enrichment or reprocessing is not
services, such as nuclear reactor designs, nuclear facility
required for 123 agreements. Still, some 123 agreements
operational information and training, and nuclear fuel
contain provisions designed to discourage national
fabrication. Part 810 authorizations are not subject to
enrichment and reprocessing programs in the Middle East.
congressional review. A March 2019, DOE press statement
The Obama Administration debated requiring parties to
confirmed that the Administration has approved seven 810
forgo enrichment or reprocessing, but ultimately decided to
authorizations related to Saudi Arabia.
use a case-by-case approach.
Proliferation, Fuel, and Policy Choices
The 123 agreement reached in December 2009 with the
United Arab Emirates (UAE) provides the United States the
Analysts have examined Saudi nuclear plans and proposals
for decades in light of the kingdom’s
right to terminate nuclear cooperation with that country if it
economic profile,
“possesses sensitive nuclear facilities within its territory or
energy resources, and security dilemmas. Saudi state policy
otherwise engages in activities within its territory relating to
underscores that the kingdom’s nuclear energy pursuits are
enrichment of uranium or reprocessing of nuclear fuel.”
limited to peaceful purposes, but senior officials, including
(For more information, see CRS Report R40344, The
Crown Prince Mohammed bin Salman, also have stated in
United Arab Emirates Nuclear Program and Proposed U.S.
2018 that if Iran pursues or obtains a nuclear weapon, then
Nuclear Cooperation.) An Agreed Minute to that agreement
the kingdom also would work to do so.
states that its terms “shall be no less favorable in scope and
effect than those which may be accorded” to other countries
The most proliferation-sensitive nuclear technology is
in the Middle East. The Minute also explains that, if the
the capability to produce fuel for nuclear reactors,
U.S. government concludes a more-favorable agreement
either by enriching uranium or reprocessing spent
with another regional government, the United States will, at
nuclear fuel to obtain plutonium. Both highly enriched
the UAE’s request, consult with the UAE “regarding the
uranium and plutonium can be used as fuel in some
possibility of amending” the agreement in order to make its
types of nuclear reactors but also are used as fissile
terms equally favorable to the new agreement.
material in nuclear weapons. KA CARE is considering
low-enriched uranium fuel for reactors in Saudi
Neither Saudi nor U.S. officials have publicly confirmed
Arabia. The dual-use nature of enrichment and
whether Riyadh would be willing to accept UAE-style
reprocessing facilities frequently generates concern
restrictions on enrichment as part of a 123 agreement. In
that ostensibly peaceful facilities may aid nuclear
February 2018, Saudi Foreign Minister Adel Al Jubeir said
weapons programs. Conversely, a program without
“we want to have the same rights as other countries,” a
such facilities generally poses little proliferation risk,
presumed reference to Iran. In May 2018, Secretary of State
but may pose security and/or environmental risks
Mike Pompeo said in Senate testimony, “we want a gold-
under some circumstances.
standard Section 123 Agreement from them, which would
not permit them to enrich.”
The 2008 U.S.-Saudi MOU, which is a statement of intent
General Security Concerns
and is not legally binding, described the Saudi
government’s intent “to rely on existing international
Ongoing threats to the security of critical Saudi
markets for nuclear fuel services as an alternative to the
infrastructure could raise concerns about the security of
pursuit of enrichment and reprocessing.” However, KA
future nuclear facilities. The U.S. government describes
CARE has said that it may use indigenous uranium
terrorist threats in Saudi Arabia as persistent, including
resources for fuel, and, in December 2017, Saudi Energy
ongoing instances of attempted attacks against government
Minister Khalid al Falih said, “we intend to localize the
installations; Saudi forces have disrupted major planned
entire value chain with nuclear energy... Whatever we do is
attacks. The ongoing conflict in neighboring Yemen has
going to be under strict compliance with international
featured ballistic missile attacks deep into Saudi territory.
agreements. But we will not deprive ourselves of accessing
U.S.-Saudi security cooperation mechanisms are robust and
our natural resources and localizing an industry that we
remain focused on mitigating these threats and others.
intend to be with us for the long term.”
Christopher M. Blanchard, Specialist in Middle Eastern
International mechanisms designed to restrict the spread of
Affairs
sensitive nuclear technology could complicate Saudi efforts
Paul K. Kerr, Specialist in Nonproliferation
to identify suitable suppliers of enrichment technology.
Saudi Arabia is a state-party to the nuclear Nonproliferation
IF10799
Treaty (NPT), and its nuclear facilities, including any Saudi
https://crsreports.congress.gov
Prospects for Enhanced U.S.-Saudi Nuclear Energy Cooperation
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https://crsreports.congress.gov | IF10799 · VERSION 8 · UPDATED