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Page added on April 25, 2016

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Less Than 5% Of Saudi Aramco To Be Sold

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Saudi Arabia plans to sell less than 5 percent of its state oil company Saudi Aramco through an initial public offering (IPO), Deputy Crown Prince Mohammed bin Salman said on Monday.

He said in a television interview he expected Aramco, the world’s biggest energy company, to be valued at more than $2 trillion and that he wanted it to be transformed into a holding company with an elected board.

Subsidiaries of the company would also be sold by IPO, as part of a privatisation drive and to bring more transparency to the oil giant, Prince Mohammed said.

“If one percent of Aramco is offered to the market just one percent it will be the biggest IPO on earth,” he said.

Aramco was once run by Americans but has long been a Saudi state corporation. It dwarfs all in the industry, with crude reserves of 265 billion barrels, more than 15 percent of global oil deposits.

It produces more than 10 million barrels per day, three times as much as the world’s largest listed oil company, ExxonMobil, while its reserves are more than 10 times bigger. If Aramco were ever to go public, it would probably become the first company to be valued at more than $1 trillion.

“Less than 5 percent from the parent company … we are trying to separate it and make Aramco a holding company,” Prince Mohammed said.

The listing of Aramco would be on the Saudi stock market, he said, adding that one idea being studied was to set up a fund in the U.S. market which would buy shares in Aramco to help bring liquidity.

It is not clear which of Aramco’s ventures might be involved in a sale but the range of candidates is wide. Aramco and its subsidiaries own or have an equity interest in more than 5 million barrels per day of refining capacity.

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9 Comments on "Less Than 5% Of Saudi Aramco To Be Sold"

  1. HARM on Mon, 25th Apr 2016 8:59 pm 

    If less than 5% of Aramco would be valued at $2 Trillion, then the whole thing is at least $40 Trillion. All for a country with fewer than 20 million Saudi citizens (there are millions more non-Saudi workers). Or roughly 2 MILLION BUCKS per resident.

    No wonder the KSA has such an outsized influence over the entire Islamic world, theology, terrorism, etc.

  2. geopressure on Mon, 25th Apr 2016 10:49 pm 

    The Whole thing is thought to be worth $2 Trillion… Making it 400% larger than Apple, the worlds’s largest company that is public…

    XOM is the largest publicly traded oil & gas company & their market cap is only $365 Billion… For a comparison, XOM produces about 3 Million BOPD…

  3. Boat on Mon, 25th Apr 2016 10:55 pm 

    geo,

    Update on the petro dollar conspiercy? Wasen’t doom supposed to happen today?

  4. Speculawyer on Tue, 26th Apr 2016 12:18 am 

    “He said in a television interview he expected Aramco, the world’s biggest energy company, to be valued at more than $2 trillion”

    LOL. What an inflated sense of ego. No, I would not value so highly a company with wells that are probably declining and located in an area of the planet well known for religious war. No thanks.

  5. Speculawyer on Tue, 26th Apr 2016 12:21 am 

    OMG . . . in that ‘Peak Oil is You” box to the left, Matthew Simmons face came up with this story. How ironic.

  6. q1 on Tue, 26th Apr 2016 5:19 am 

    Extract everything and than sold the empty hole to imbeciles. A nice business plan.

  7. q1 on Tue, 26th Apr 2016 5:24 am 

    correction – and then sell…

  8. Joe on Tue, 26th Apr 2016 5:40 am 

    5% of nothing, is nothing. This is how Islam takes over America, by greed. Whuda thought….
    Wonder how Israel will answer this challenge. Afterall this is the first direct challenge to their chosen method of buying politicians and wing power in America.

  9. Kenz300 on Tue, 26th Apr 2016 8:47 am 

    The oil companies and the auto companies need to get their collective heads out of the sand and realize that the world is changing with or without them. Climate Change is real….. it will impact all of us…

    It is time to move away from fossil fuels and embrace alternative energy sources like wind, solar, wave energy, geothermal and second generation biofuels made from algae, cellulose and waste. They need to change their business models and move from being OIL companies to ENERGY companies. The auto industry needs to move from just building compliance vehicles to embracing electric vehicles and start putting development and advertising behind them..

    The world is moving to embrace alternative energy sources…….. the fossil fuel companies can transform themselves into “energy” companies or they can die a slow death. As Climate Change impacts more people there will be a bigger backlash against fossil fuels.

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