Saudi, Russia connect
Moscow seeks to finalise multi-milliondollar investment deals with Riyadh in the next three months, including partnerships with state oil giant Saudi Aramco. This move is aimed at strengthening energy ties between the two major oil producers.
riyadh — Russia is seeking to finalise multi-million-dollar investment deals with Saudi Arabia in the next three months including partnerships with state oil giant Aramco, Russia’s top state investment officer said on Wednesday.
Russian banks and a Russian-Chinese investment fund are also keen to take part in Aramco’s initial public offering (IPO), the head of the Russian Direct Investment Fund, Kirill Dmitriev, told reporters, reiterating comments he made last month. The move is aimed at strengthening energy ties between the two major oil producers.
Dmitriev told Reuters last month that there was great interest in the Aramco IPO from Russian pension funds and Chinese partners.
Sources told Reuters last year that Chinese state oil companies were willing to be cornerstone investors in the Aramco IPO, which could become the world’s biggest, valuing the firm at up to $2 trillion and raising more than $100 billion.
“There are a number of investors who would like to invest in the Aramco IPO, including several banks,” Dmitriev said on Wednesday. “Not only this, we have a Russia-China investment fund, and through that fund we see a major interest in the Aramco IPO from a number of leading Chinese institutions.”
Also on Wednesday, Saudi Energy Minister Khalid Al Falih said the Opec would do better to leave the oil market slightly short of supplies rather than ending too early a deal on cutting output.
“If we have to err on over-balancing the market a little bit, so be
We have a Russia-China investment fund, and through that fund we see a major interest in the Aramco IPO from a number of leading Chinese institutions head of the Russian Direct Investment Fund
it,” Al Falih said after meeting Russian Energy Minister Alexander Novak in Riyadh.
“Rather than quitting too early and finding out we were dealing with less reliable information... Stay the course and make sure that inventories are where the industry needs them,” Al Falih said. Saudi officials have said the government plans to sell up to five per cent of Aramco shares on one or more foreign exchanges in addition to Riyadh.
“We will see how the IPO process progresses but we see significant interest to invest in the Aramco IPO, from Russia, from China. We believe this is very good for, once again, thinking jointly about oil,” Dmitriev said.
He also said the Russian Direct Investment Fund, the Saudi Public Investment Fund and Aramco planned to invest in several projects through their joint energy platform including in Russia’s Eurasia Drilling, a major independent driller.
“We expect to finalise an agreement very shortly to have our energy platform with Saudi Aramco invest in Eurasia Drilling and also provide services to Saudi Aramco,” Dmitriev said. —