Aramco IPO to Reveal Extent of Saudi Crude Oil Reserves
Khalid al-Falih said 3rd parties would independently verify “reserves” disclosed to investors
The planned listing of state-owned Oil giant Saudi Arabia will include information on the extent of the Kingdom’s reserves, according to reports.
Saudi energy minister Khalid al-Falih said the IPO (initial public offering) would be the “the most transparent national Oil company listing of all time.”
Since the nationalisation of Aramco in the 1980’s, Saudi Arabia has consistently said the country’s proven Oil reserves stand at 260-B bbls.
But a lack of independent verification has left many to wonder if the country is sitting on significantly more or less Crude Oil than stated.
Mr. Al-Falih said 3rd parties would independently verify everything disclosed by Aramco during the IPO, including “reserves, costs, profitability indicators”.
The 5% listing, which is planned for Y 2018, is expected to value the company at more than $2-T
However, Saudi’s Crude Oil reserves are not expected to be part of the sale and the state will maintain sovereign right over their management.
Al-Falih indicated the funds could transform Saudi Aramco into a company similar to US industrial conglomerate General Electric (NYSE:GE) covering multiple sectors such as aerospace, healthcare and lighting.
“Saudi Aramco can be multiples of GE if we put our mind to it,” he said indicating the listing could help the firm enter other sectors including robotics and the Internet of Things.
Separately the energy minister said the country was close to finalizing a tender to significantly increase its use of renewable energy.
Saudi Arabia plans to install nearly 10GW of solar, wind and other clean power by Y 2023 to meet 10% of peak demand.
This could rise to 30% through a mix of renewables and nuclear power, he said, but suggested there were no imminent plans to build a nuclear plant.
Latest posts by Paul Ebeling (see all)
- Red Tide Crisis in Florida, State of Emergency Declared - August 14, 2018
- Bitcoin (BTC) Down to 8-Week Lows - August 14, 2018
- President Trump’s Approval Rate at 50% - August 14, 2018