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Saudi Aramco IPO

Discussions about the economic and financial ramifications of PEAK OIL

Re: Saudi Aramco IPO

Unread postby rockdoc123 » Sun 24 Feb 2019, 18:12:39

Saudi Aramco, like most other private companies, doesn't publish annual reports like those issued by publicly traded companies. Aramco generally doesn't release quarterly or annual information on its sales or profits or assets the way publicly traded companies are required to do. In fact, Saudi ARAMCO rarely releases any data at all.


well in fact they do publish their annual review. You can download the 2017 annual review from their website. I did not say they publish their finances (in fact I didn't say they publish anything, I said they create those reports internally which they do), why in Gods name would a private company publish their finances? Public companies publish them because they are required to. And just because they don't publish them does not mean they don't keep financial records in accordance with international accounting standards. Their finances were just audited, which means the changes to the way they account will have been implemented already. Like every other large private company they will audit their finances every year because they still have shareholders, the main one being the government. If for some reason you think Aramco doesn't keep financial records then you are really out to lunch.

This means, if the IPO goes ahead in 2021, ARAMCO, for the first time in its history, will be publicly issuing quarterly and annual reports detailing their finances and assets, including oil reserves.


so what? What does that have to do with your suggestion that filing for an IPO in the US will require a full redo of their reserves and financial audits? The answer is it doesn't, it is simply a statement of the obvious.
And I suggest you familiarize yourself with the nature of listing around the world. Aramco if listed in New York would be a foreign entity and is not under the same requirements for quarterly reporting as a US-based entity. If they are dual listed then the requirements are even less. Canadian companies listed on the TSX and then dual listed on a US exchange as an example are exempt from many of the requirements faced by US-based companies including the need to file certain documents.
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Re: Saudi Aramco IPO

Unread postby Plantagenet » Sun 24 Feb 2019, 21:35:35

they do publish their annual review.....


Get real.

The ARAMCO annual review is totally different then an annual report---its just a public relations vehicle. There isn't even a hint of financial data in the Aramco annual report.

Your attempt to conflate the Aramco annual review with a conventional annual report is ridiculous.

so what?


So the facts are clear. Aramco has never published an annual report and your attempt to conflate the Aramco annual review with a conventional annual report is misguided and wrong.

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Re: Saudi Aramco IPO

Unread postby rockdoc123 » Sun 24 Feb 2019, 23:44:11

The ARAMCO annual review is totally different then an annual report---its just a public relations vehicle. There isn't even a hint of financial data in the Aramco annual report.


UH, when was the last time you looked at an annual report? I worked for several intermediate O&G companies years ago and this was exactly what construed our annual report. Look at any of the Intermediate to Major O&G companies with respect to their annual report to shareholders. Did you even bother to go to the part that breaks out production, reserves, sales etc? Apparently not. All that is missing is the detailed financials which, as I said, would not be expected from a private company. Do you actually expect a private company to post financial data? Why would they do that? This is exactly the type of annual report that is being sent out these days....glossy, speaks to what they are doing and puts some detail about the business at the end. The public companies include their finances, the private ones do not.

So the facts are clear. Aramco has never published an annual report and your attempt to conflate the Aramco annual review with a conventional annual report is misguided and wrong.


Do I actually have to start posting links to annual reports/reviews that are absolutely no different? Here's one for you
https://corporate.exxonmobil.com/investors/annual-report and there are hundreds more just like it.

What is bizarre here is you continue to make claims about all sorts of things, SEC requirements, the way debt is issued, annual reports etc ( one only has to go up thread to count the number of false claims) that are all just completely based on made up crap. Familiarize yourself with the actual requirements before you post this nonsense. You may think it makes you look smart, it doesn't.
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Re: Saudi Aramco IPO

Unread postby Plantagenet » Tue 26 Feb 2019, 19:18:55

Yo crockdoc

The SEC requires publicly traded companies to issue audited annual reports on their financial data.

The annual reviews issued by ARAMCO contain no financial data.

Do you understand the differance now? Please wag your tail if you get it

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Re: Saudi Aramco IPO

Unread postby Plantagenet » Mon 01 Apr 2019, 11:28:22

Saudi Aramco has FINALLY allowed an independent auditor to examine its books, as part of the required process of issuing bonds to buy SABIC. This removes a major obstacle to doing the planned IPO, which over the last several years has been delayed and postponed repeatedly.

The independent analysis by Moody's shows Saudi Aramco is immensely profitable, paying about 50 billion/year just in dividends to the royal family.

Moody's rated Aramco as investment grade, but did not give the company its top financial rating because of the direct control over Aramco by the Saudi Royal Family. It appears the dividend rate can be changed at any time by the royal family if they need more cash.

rare-glimpse-into-saudi-aramco

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Re: Saudi Aramco IPO

Unread postby kublikhan » Mon 01 Apr 2019, 14:03:52

pstarr wrote:
Plantagenet wrote:Saudi Aramco has FINALLY allowed an independent auditor to examine its books, as part of the required process of issuing bonds to buy SABIC. This removes a major obstacle to doing the planned IPO, which over the last several years has been delayed and postponed repeatedly.

The independent analysis by Moody's shows Saudi Aramco is immensely profitable, paying about 50 billion/year just in dividends to the royal family.

Moody's rated Aramco as investment grade, but did not give the company its top financial rating because of the direct control over Aramco by the Saudi Royal Family. It appears the dividend rate can be changed at any time by the royal family if they need more cash.

rare-glimpse-into-saudi-aramco

Cheers!

Until a down-hole analysis on all the depleting elephant wells is accomplished by a third party engineering firm, the "books" are just so much jihadi BS. What does Moody's know about oil reserves? They couldn't suss out the American mortgage bidness by 2005. So crap all to that 'audit', is what I say
You mean something like this?

February 12, 2019
DeGolyer and MacNaughton is pleased to acknowledge the recent completion of the first contemporary independent assessment of reserves in Saudi Arabia for the Saudi Arabian Oil Company. The study encompassed a highly detailed independent analysis of a massive dataset and onsite review. More than 60 geophysicists, petrophysicists, geologists, simulation engineers, reserves engineering specialists, and economists were involved in the 30-month effort.

Below is a compilation of article links where you can find further information regarding our most recent work in Saudi Arabia.
D&M CONFIRMS INDEPENDENT ASSESSMENT OF RESERVES IN SAUDI ARABIA FOR THE SAUDI ARABIAN OIL COMPANY

From the articles D&M provided:

Top oil exporter Saudi Arabia announced Wednesday a slight rise in its crude oil reserves after an independent audit, the first time in decades the kingdom has released any of its closely guarded field data. Saudi Arabia’s total proven oil and gas reserves stood at around 268.5 billion barrels of oil and 325.1 trillion standard cubic feet of gas at the end of 2017, the Saudi Energy Ministry said in a statement.
Saudi Arabia Announces Increased Crude Oil Reserves in Rare Release

Saudi Arabia has opened up its vast energy reserves to independent auditors for the first time, a move that could help it revive plans to sell shares in state oil giant Aramco. The government of Saudi Arabia said in a statement Wednesday that US energy consultancy DeGolyer & MacNaughton had concluded that its oil reserves total 268.5 billion barrels. The estimate is slightly higher than the 266.3 billion barrel figure previously published by the Saudi government.

Allowing an independent company to assess its reserves represents a major shift for Saudi Arabia, which has for decades closely guarded data about its oil and gas industry.
Saudi Arabia has always claimed vast oil reserves. An audit just proved it's right
The oil barrel is half-full.
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Re: Saudi Aramco IPO

Unread postby Outcast_Searcher » Mon 01 Apr 2019, 18:00:56

pstarr wrote:BS. Stalling forever is not an accomplishment. Where is it, the reserve measures? Where are the numbers? It's been years. The dumb fecks claimed to have 12 mbpd 'capacity' in the runup to the Greatest Depression. To $147/barrel oil. Yet those Muslim Playboys never produced anywhere near that. Damn cheating liars is what those jihadi bastards are. Swing producers my @ss.

The goddamn health of the world depend on SA's ballooning reserves. The rest of the world's oil fields (save one or two) are in precipitous decline. If Moody's and the other cornucopians have some hard data . . . show it. Otherwise DeGolyer & MacNaughton and the rest are no better than the other terrorists. Stop hiding the data. Show me the new reserve analysis or STFU

Back to your usual mode of spouting nonsense and denying reality if your penchant for claiming oil insta-doom isn't backed up by the data I see.

Do you have CREDIBLE data to counter the data cited above, or only the usual empty ranting?

Yeah, given your history, I thought so.
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.
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Re: Saudi Aramco IPO

Unread postby onlooker » Mon 01 Apr 2019, 18:12:20

Well, we have to go to this node from 2008 from the Oil drum to get the real story about Saudi reserves.
Why do we have to assume no collusion on the part of the US ie. its energy consulting companies and KSA. They have every reason to conspire to not prematurely end the age of oil

http://theoildrum.com/node/3665
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Re: Saudi Aramco IPO

Unread postby rockdoc123 » Mon 01 Apr 2019, 19:43:57

Well, we have to go to this node from 2008 from the Oil drum to get the real story about Saudi reserves.
Why do we have to assume no collusion on the part of the US ie. its energy consulting companies and KSA. They have every reason to conspire to not prematurely end the age of oil


perhaps you should remove your tinfoil hat. Degolyer & McNaughton and Gaffney Cline are two of the largest reserve audit firms in the world. They are governed by laws where legally they are now held accountable by the SEC and all other regulatory bodies for those reserve reports. They don't take this lightly as any money they would have been paid by the Saudi's for the audit pales in comparison to the annual returns they make around the world which would disappear if they were ever found to be falsifying reports. Not going to happen.
The reserve audit companies have said the numbers from Aramco are correct and Aramco has come out officially stating what the reserve audits arrived at, numbers that are slightly higher than what they have been saying all along. It was announced in January that Aramco will be seeking $10 billion in bonds which is supposed to close in late second quarter of 2019. To issue those bonds they have to first issue a prospectus that must include the reserve report information along with their financial information.

But you would rather go with conspiracy theory speculation of what they might have rather than what has been actually reported? Why am I not surprised? Maybe you can join it together with your 911 theories. :roll:
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Re: Saudi Aramco IPO

Unread postby rockdoc123 » Mon 01 Apr 2019, 20:46:05

OK. The bond prospectus was released today. In that release they outline audit results of their finances and reserves. (I obtained this from a friend working in finance in the UK).

With regard to finances the prospectus states:

The Financial Statements have been prepared in accordance with IFRS and have been audited by the Company’s independent auditors, PricewaterhouseCoopers Public Accountants, as stated in their audit reports for the 2017 Financial Statements and the 2018 Financial Statements appearing on pages F-81 and F-3 of this Base Prospectus, respectively.


With regards to reserves the prospectus states

Unless otherwise indicated, any reference in this Base Prospectus to reserves of crude oil and condensate, natural gas or other hydrocarbons are reserves owned by the Kingdom that the Company has the right to operate and develop through the Concession and exclude reserves other entities have the right to develop, including AGOC, the Company’s wholly owned subsidiary, which operates in the partitioned territory between the Kingdom and the State of Kuwait.


The Company’s reserve estimates conform to the SPE-PRMS definitions and guidelines, which is the internationally recognised industry standard sponsored by the Society of Petroleum Engineers, the American Association of Petroleum Geologists, the World Petroleum Council and the Society of Petroleum Evaluation Engineers. To estimate or update the Company’s reserve estimates, the upstream segment employees responsible for reserves calculations perform technical analyses that are reviewed internally by progressively higher levels of management until finalised at year-end.


The Company retained independent petroleum consultants, D&M, to audit reservoirs the Company believes accounted for approximately 80% of the Company’s oil equivalent reserves as at 31 December 2017. The Company chose this scope because of the overall scale of the Kingdom’s reserves and the concentration of deposits in the major reservoirs that were assessed. Further independent assessment of the Company’s smaller reservoirs would have taken several years to complete. D&M’s reserves certification of 208.7 billion barrels of oil equivalent reserves was 0.1% higher than the Company’s internal estimation for the same reservoirs. The certification letter of D&M, which describes its procedures, conclusions and assumptions, appears as Appendix C to this Base Prospectus. The technical personnel responsible for preparing the certification of the reserve estimates at D&M meet the requirements regarding qualifications, independence, objectivity and confidentiality set forth by the Society of Petroleum Engineers. D&M is an independent consultancy firm and does not own an interest in the Company’s properties and is not employed on a contingent fee basis.


The certification of reserves letter from D&M

Image

and the tables comparing Aramco reserve estimates versus those independently arrived at by D&M

Image

and in the certification they state

In comparing the detailed proved reserves estimates prepared by DeGolyer and MacNaughton and those prepared by Saudi Arabian Oil Company for the properties evaluated, differences have been found, both positive and negative, in reserves estimates for individual properties that result in an aggregate difference of less than 0.1 percent. For the five largest fields in terms of proved reserves, the aggregate difference is less than 1.0 percent. It is DeGolyer and MacNaughton’s opinion that the proved reserves estimates prepared by Saudi Arabian Oil Company on the properties evaluated by DeGolyer and MacNaughton and referred to above, when compared on the basis of net millions of barrels of oil equivalent, in aggregate, do not differ materially from those prepared by DeGolyer and MacNaughton
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Re: Saudi Aramco IPO

Unread postby Plantagenet » Mon 01 Apr 2019, 21:52:23

DeGolyer and MacNaughton have released a bottom line number for total Saudi oil reserves, but I haven't seen any more detailed breakdown of this number.

One thing I'd like to see is an estimate of the remaining reserves at Ghawar. Even after 40+ years of production, this old supergiant field still comprises about half of the total Saudi oil production.

If Ghawar peaks and goes into rapid decline in the coming years, Saudi will be hard pressed to maintain their current rate of oil production, no matter what their oil reserves are. Its like Cantarell in Mexico---once they lost that supergiant field, the oil production for the entire country peaked and went into decline. The same thing could happen easily in KSA.

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Re: Saudi Aramco IPO

Unread postby marmico » Mon 01 Apr 2019, 21:56:54

Great post rockdoc.

Hmm...on D&M's certification.

I thought that Aramco oil reserves were ~265 gigabarrels not that reserves were 265 gigabarrels of oil equivalent. If I back out the LPG and natural gas equivalents and gross up by 25% since only 80% is certified, I get 208 gigabarrels of oil reserves.
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Re: Saudi Aramco IPO

Unread postby rockdoc123 » Mon 01 Apr 2019, 22:47:09

I thought that Aramco oil reserves were ~265 gigabarrels not that reserves were 265 gigabarrels of oil equivalent. If I back out the LPG and natural gas equivalents and gross up by 25% since only 80% is certified, I get 208 gigabarrels of oil reserves.


As I remember the Chairman of Aramco had indicated oil reserves of 227 billion barrels and total hydrocarbon reserves o 257 billion boe. If 208 Gboe represents 80% that works out to 260 Gboe. 80% of 227 Gbbls of oil is 181 Gbbls which is actually less than the 190 Gbbls of oil and liquids D&M arrived at. Seems to make sense. It would be interesting to understand what is still left in 2P and 3P. These numbers exclude the shared zone which I believe has an additional net 2.5 Gbbls.
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Re: Saudi Aramco IPO

Unread postby kublikhan » Tue 02 Apr 2019, 11:25:03

Plantagenet wrote:One thing I'd like to see is an estimate of the remaining reserves at Ghawar. Even after 40+ years of production, this old supergiant field still comprises about half of the total Saudi oil production.
48.2 billion barrels according to the recently released info. And it's production is more like a third of Saudi production. Ghawar has been declining faster than estimates. That means other fields in Saudi Arabia must have been picking up the slack.

When Saudi Aramco on Monday published its first ever profit figures since its nationalization nearly 40 years ago, it also lifted the veil of secrecy around its mega oil fields. The company’s bond prospectus revealed that Ghawar is able to pump a maximum of 3.8 million barrels a day -- well below the more than 5 million that had become conventional wisdom in the market. “As Saudi’s largest field, a surprisingly low production capacity figure from Ghawar is the stand-out of the report”.

The 470-page bond prospectus confirms that Saudi Aramco is able to pump a maximum of 12 million barrels a day. While the prospectus confirmed the overall maximum production capacity, the split among fields is different to what the market had assumed. As a policy, Saudi Arabia keeps about 1 million to 2 million barrels a day of its capacity in reserve, using it only during wars, disruptions elsewhere or unusually strong demand. Saudi Arabia briefly pumped a record of more than 11 million barrels a day in late 2018. “The company also uses this spare capacity as an alternative supply option in case of unplanned production outages at any field and to maintain its production levels during routine field maintenance,” Aramco said in its prospectus.

Aramco also disclosed reserves at its top-five fields, revealing that some of them have shorter lifespans than previously thought. Ghawar, for example, has 48.2 billion barrels of oil left, which would last another 34 years at the maximum rate of production. Nonetheless, companies are often able to boost the reserves over time by deploying new techniques or technology.

In total, the kingdom has 226 billion barrels of reserves, enough for another 52 years of production at the maximum capacity of 12 million barrels a day.

In his book “Twilight in the Desert,” Simmons argued that Saudi Arabia would struggle to boost production due to the imminent depletion of Ghawar, among other factors. “Field-by-field production reports disappeared behind a wall of secrecy over two decades ago,” he wrote in his book in reference to Aramco’s nationalization. The new details about Ghawar prove one of Simmons’s points but he missed other changes in technology that allowed Saudi Arabia -- and, more importantly, U.S. shale producers -- to boost output significantly, with global oil production yet to peak.

The Saudis also told the world that their fields are aging better than expected, with “low depletion rates of 1 percent to 2 percent per year,” slower than the 5 percent decline some analysts suspected.

Yet, it also said that some of its reserves -- about a fifth of the total -- had been drilled so systematically over nearly a century that more than 40 percent of their oil has been already extracted, a considerable figure for an industry that usually struggles to recover more than half the barrels in place underground.
On top of Ghawar, which was found in 1948 by an American geologist, Saudi Arabia relies heavily on two other mega-fields: Khurais, which was discovered in 1957, and can pump 1.45 million barrels a day, and Safaniyah, found in 1951 and still today the world’s largest offshore oil field with capacity of 1.3 million barrels a day. In total, Aramco operates 101 oil fields.
The Biggest Saudi Oil Field Is Fading Faster Than Anyone Guessed
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Re: Saudi Aramco IPO

Unread postby kublikhan » Tue 02 Apr 2019, 11:27:46

Plantagenet wrote:If Ghawar peaks and goes into rapid decline in the coming years, Saudi will be hard pressed to maintain their current rate of oil production, no matter what their oil reserves are. Its like Cantarell in Mexico---once they lost that supergiant field, the oil production for the entire country peaked and went into decline. The same thing could happen easily in KSA.
It seems to me Saudi Arabia has been more active in getting additional fields online besides their super giant field. In contrast to Mexico where they seemed more interested in milking Pemex for every penny.

After more than a decade of declining production, wasteful spending and a higher tax burden than any other driller in Latin America, it’s little wonder Mexico’s Petroleos Mexicanos is the world’s most indebted oil company. Pemex’s oil output has plunged by almost half since a 2004 peak, and its proven reserves are just a quarter of what they were almost two decades ago.

Its six refineries operate at about one-third of their capacity and lose more money with each extra barrel of crude they process, despite upgrade projects that began in the early 2000s. The $12 billion Tula Bicentenario refinery was scrapped five years after it was announced, and now the new government wants to spend $8 billion on another one in Dos Bocas. Pemex lost more than $1 billion dollars on decrepit fertilizer plants it purchased in 2014 and 2016 and squandered millions of dollars on a now-defunct electricity generation unit it created in 2015.

The company has sought to reduce spending over the years to shore up its finances. Yet the austerity measures, while helping to slow the acceleration of its debt, did little to prevent the pile from creeping higher -- to a whopping $107 billion. It’s also guaranteed that output would continue to dwindle as field maintenance and the development of new wells were suspended, and the revamp of its aging refineries delayed.

To make matters worse, Pemex has long been the government’s cash cow, accounting for about 20% of the annual federal budget. In the past two decades, 95% of Pemex’s pretax profits went to the government, which is higher than even PDVSA in Venezuela, according to Capital Economics.
How Pemex became the most indebted oil company in the world

In 2018, Aramco's earnings before interest, tax, depreciation and amortization were $224 billion. Aramco is the most profitable company in the world. By most measurements it is probably the most valuable company as well, which would give a potential Aramco IPO a valuation of at least more than $1 trillion at this time.

We now have some idea about the kingdom of Saudi Arabia's revenue. In 2017, in anticipation of an Aramco IPO, Saudi Arabia decreased the income taxes Aramco pays to the government from 85% to 50%.

When it's all said and done, Aramco may bring in about $80 billion or more (potentially significantly more) in cash. Moody's now says Aramco's 2018 net income was $111.1 billion. At the end of 2017, Aramco announced plans to spend $40 billion per year for ten years on capital expenditures. Aramco has the ability to fulfill its $40 billion Capex plans and more. Fitch reported that, at the end of 2018 Saudi Aramco had "cash and cash equivalents" of $49 billion. Clearly Aramco is accumulating cash, especially since its income tax rate was lowered. But even after Capex and setting aside cash, Aramco's profits could still be quite large.

To be clear, the information available from Fitch's press release is nothing compared to what would be available before an IPO.
Saudi Aramco Is The Most Profitable Company In The World
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Re: Saudi Aramco IPO

Unread postby Plantagenet » Tue 02 Apr 2019, 12:03:22

Thanks KublaiKhan. You answered all the questions I had on Ghawar. Thank you for finding the information and presenting it so clearly in your post.

I want you to know I appreciate all the posts you make. You are one of the best posters at the site, and consistently provide useful information without all the histrionics.

Thanks again.

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Re: Saudi Aramco IPO

Unread postby rockdoc123 » Tue 02 Apr 2019, 12:47:44

To be clear, the information available from Fitch's press release is nothing compared to what would be available before an IPO.


this is a significant point. A few of the press reviews I've read focus on the taxation issues with Aramco (sliding scale royalties as well) and how that indicates their value is probably around $1.5 trillion versus the $2 trillion that Aramco has suggested an IPO could bring in. But all of those analyses look at Aramco only. The whole point of the prospectus was to raise money through bond issuance to aid in the purchase of SABIC. The IPO would be Aramco bolstered with it's ownership of SABIC and the inherent free cash flow that would come with that. That requires looking at the financial in a manner that you could see the combined entity. The combined entity should be worth much more given the current cash flow from SABIC, assuming Aramco decides to keep the company as one unit rather than splitting into an upstream and downstream component.
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Re: Saudi Aramco IPO

Unread postby kublikhan » Wed 03 Apr 2019, 12:12:29

If anyone wants to read through the 470 page bond prospectus I linked to it below. I included a few sections from it:

Principal Oil Fields
The following table sets forth the Company’s reserves and MSC of the Company’s largest oil fields as at 31 December 2018, which are listed according to 2018 production.

Code: Select all
MSC - The average maximum number of barrels per day of crude oil that can be produced for one year during any future planning period.

Field    Liquids          Combined                   MSC(mmbpd)
         Reserves(mmbbl)  Reserves(mmboe)
Ghawar    48,254            58,319                   3.800
Shaybah   13,617            14,864                   1.000
Khurais   20,100            21,402                   1.450
Safaniyah 33,664            34,029                   1.300
Zuluf     30,417            31,313                   0.825
Other     80,718            96,963                   3.625
Total    226,770           256,890                  12.000


DeGolyer and MacNaughton
Pursuant to your request, this report of third party presents an independent evaluation, as of December 31, 2017, of the extent of the net proved oil, condensate, liquefied petroleum gas (LPG), and marketable gas reserves of certain properties onshore and offshore the Kingdom of Saudi Arabia in which Saudi Arabian Oil Company has represented that it holds a 100-percent interest. This evaluation was completed on November 30, 2018.

Methodology and Procedures
Estimates of reserves were prepared by the use of appropriate geologic, petroleum engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the petroleum industry and in accordance with definitions established by the PRMS. The method or combination of methods used in the analysis of each reservoir was tempered by experience with similar reservoirs, stage of development, quality and completeness of basic data, and production history.

The reserves estimates presented herein were generally based on consideration of drilling results, analyses of geophysical and geological data, well-test results, pressures, and core data available through December 31, 2017. Production data from wells drilled on the properties evaluated herein were provided through December 31, 2017. Where applicable, estimated gross production through December 31, 2017, was deducted from gross ultimate recovery to arrive at gross reserves.


Primary Economic Assumptions
The following economic assumptions were used for estimating the reserves reported herein:
Code: Select all
Crude Type       Price(U.S.$/bbl)
Arab Heavy       $59.10
Arab Medium      $60.47
Arab Light       $61.84
Arab Extra Light $63.51
Arab Super Light $66.17

The overall average oil price in this report was $60.76/bbl.

CERTIFICATE of QUALIFICATION
I, Regnald A. Boles, Petroleum Engineer with DeGolyer and MacNaughton, hereby certify:
1. That I am a Senior Vice President with DeGolyer and MacNaughton, which firm did prepare the report of third party addressed to Saudi Arabian Oil Company dated November 30, 2018, and that I, as Senior Vice President, was responsible for the preparation of this report of third party.
2. That I attended Texas A&M University, and that I graduated with a Bachelor of Science degree in Petroleum Engineering in the year 1983; that I am a Registered Professional Engineer in the State of Texas; that I am a member of the International Society of Petroleum Engineers; and that I have approximately 35 years of experience in oil and gas reservoir studies and reserves evaluations.
Base Prospectus - SAUDI ARABIAN OIL COMPANY
The oil barrel is half-full.
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kublikhan
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