Saudi Ara­bia to keep full con­trol

New Straits Times - - Business World - MO­HAMMED SAL­MAN

KUWAIT: Saudi Ara­bia will re­tain full own­er­ship of its oil and gas (O&G) re­serves and sole de­ci­sion-mak­ing author­ity on pro­duc­tion lev­els after Saudi Ara­bian Oil Co’s long-awaited ini­tial public of­fer­ing, said Deputy Crown Prince Mo­hammed Sal­man on Tues­day.

Saudi Aramco, the world’s largest oil-ex­port­ing com­pany, held a con­ces­sion to pump the king­dom’s O&G and a stake in that ven­ture was what would be sold in the of­fer­ing of “not far from five per cent” of its shares next year, he said.

An­a­lysts at San­ford C. Bern­stein & Co and Rys­tad En­ergy AS in March said the of­fer­ing had a po­ten­tial mar­ket value above US$1 tril­lion (RM4.31 tril­lion).

“The wells will still be owned by the gov­ern­ment,” said Mo­hammed Sal­man, the son of King Sal­man Ab­du­laziz.

“The com­pany only has the right to ben­e­fit from the wells. This is the same as be­fore and there are no changes to that.”

Pro­ceeds from the of­fer­ing would en­large sovereign-wealth fund and at least half had been ear­marked to de­velop lo­cal in­dus­tries, he said. Bloomberg

The wells will still be owned by the gov­ern­ment.

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