CEO: Saudi Government to Keep Controlling Stake if it Lists Aramco

Reuters

KHOBAR, Saudi Arabia, Jan 13 (Reuters) – Saudi Arabia's government will keep a controlling interest in state-owned Saudi Aramco if it decides on a share offering of the world's largest oil firm, its chief executive said.

Aramco has crude reserves of about 265 billion barrels, over 15 percent of all global oil deposits. If it went public, it could become the first listed company valued at $1 trillion, analysts have estimated

"A range of options are being considered, including the listing in the capital markets of an appropriate percentage of Saudi Aramco shares with the government retaining a controlling interest, as well as the option to list a bundle of downstream businesses and interests," Amin Nasser wrote in a letter published in Aramco's weekly magazine the Arabian Sun.

Nasser, who is chairing a steering committee overseeing the process, cited the government's privatization initiative and broader economic reforms as the two key drivers behind the move.

Deputy Crown Prince Mohammed bin Salman appeared to indicate in an interview with The Economist magazine last week that Saudi Arabia might sell shares in Aramco, as part of a privatisation drive to raise money in an era of low oil prices.

Last Fridy, it issued a brief statement saying it was considering options including the stock market listing "of an appropriate percentage of the company's shares and/or the listing of a bundle (of) its downstream subsidiaries".

Aramco Chairman Khalid al-Falih told the Wall Street Journal on Monday there was no specific timeline or concrete plan for the listing. However, a listing of the main company, which includes upstream, as well as refining and petrochemical assets was being considered, he said.

(Reporting by Reem Shamseddine; Editing by Rania El Gamal and Susan Thomas)

 

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
State Income Tax Counsel/Tax Advisor
Expertise: Accounting|Financial Analyst
Location: San Ramon, CA
 
Project Cost Controls Specialist
Expertise: Cost Engineer|Project Controls
Location: 52723
 
Gas and Electric Field Operations Manager Job
Expertise: Budget / Cost Control|Operations Management|Refinery / Plant Operations Supervisor
Location: Evergreen, CO
 
search for more jobs

Brent Crude Oil : $47.35/BBL 3.18%
Light Crude Oil : $45.93/BBL 3.25%
Natural Gas : $2.99/MMBtu 1.01%
Updated in last 24 hours