U.S. Energy Secretary Rick Perry said on Saturday that conversations with Saudi Arabia on a nuclear program are going forward.

In order for U.S. companies to compete for Saudi Arabia’s project, Riyadh would normally need to sign an accord on the peaceful use of nuclear technology with Washington.

Reuters has reported that progress on the discussions has been difficult because Saudi Arabia does not want to sign a deal that would rule out the possibility of enriching uranium or reprocessing spent fuel – both potential paths to a bomb.

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