Saudi Arabia to keep full control
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.