Aramco Delays Payment on Sabic Deal by Four Years
(Bloomberg) -- Saudi Aramco will delay fully paying for the acquisition of a 70 percent stake in petrochemicals company Sabic by four years until September 2025 under terms of a new deal agreed on last month.
Aramco will also only pay the kingdom’s sovereign wealth fund about a third of the $69.1 billion price tag in cash, down from half previously, the oil firm said in its intention-to-float announcement on Sunday. The purchase of the Public Investment Fund’s stake in Saudi Basic Industries Corp., as the company is formally known, is set to close in the first half of 2020, the document shows.
Under the fresh pact, Aramco will also pay a total of $3 billion in additional costs to PIF in the form of loan charges and promissory notes. When the deal was first agreed on in March, Aramco was set to foot $1 billion in loan charges and promissory notes, according to its bond prospectus from April.
The acquisition of Sabic is a key part of Aramco’s strategy of moving downstream from oil production into chemicals, and also served as a way to help PIF raise cash to fund its investment plans.
Aramco’s intention-to-float announcement means around three years of work on the company’s initial public offering, which could be the largest ever, may be drawing to a close. Shares in the company are expected to be listed on the local stock exchange next month.
To contact the reporter on this story:
Matthew Martin in Dubai at mmartin128@bloomberg.net
To contact the editors responsible for this story:
Stefania Bianchi at sbianchi10@bloomberg.net
Vernon Wessels, Michael Gunn
WHAT DO YOU THINK?
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.
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension