SAUDI ARAMCO TO GO PUB­LIC?

Qatar Today - - BUSINESS -

State-owned Saudi Aramco has crude re­serves of about 265 bil­lion bar­rels, over 15% of all global oil de­posits and now there are re­ports of mak­ing Aramco pub­lic.

If it went pub­lic, it could be­come the first listed com­pany val­ued at $1 tril­lion, an­a­lysts have es­ti­mated. Saudi Ara­bia's govern­ment will keep a con­trol­ling in­ter­est in Saudi Aramco if it de­cides on a share of­fer­ing of the world's largest oil firm, its chief ex­ec­u­tive said.

“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.

Aramco is worth, of­fi­cials say, “tril­lions of dol­lars”, mak­ing it eas­ily the world's big­gest com­pany. It says it has hy­dro­car­bon re­serves of 261 bil­lion bar­rels, more than ten times those of ExxonMo­bil, the largest pri­vate oil firm, which is worth $323 bil­lion.

It pumps more oil than the whole of Amer­ica, about 10.2 mil­lion bar­rels a day ( b/d), giv­ing it un­par­al­leled sway over prices.

If just a sliver of its shares were placed on the Saudi stock ex­change, which cur­rently has a to­tal mar­ket value of about $400 bil­lion, they could greatly in­crease its size.

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

The LNG cargo was de­liv­ered to Da­hej LNG Ter­mi­nal in In­dia on Jan­uary 13, 2016, mark­ing the com­mence­ment of the new one mil­lion ton per an­num (MTA) SPA.

The new SPA, to­gether with the long term SPA be­tween Petronet and RasGas signed in 1999 for 7.5 MTA, raises the to­tal an­nual long-term com­mit­ment be­tween the two com­pa­nies to 8.5 MTA. RasGas has been sup­ply­ing LNG re­li­ably to In­dia and Petronet, a key long-term part­ner and cus­tomer of RasGas, since 2004.

RasGas has de­liv­ered, to date, nearly 81 MTA of LNG to In­dia to meet the coun­try's grow­ing de­mand for cleaner fuel and en­ergy.

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