Deal with Petronas gives Saudi Aramco 50% stake in Malaysian oil venture

Saudi Energy Minister Khalid Al-Falih, left, shakes hands with Malaysia's Minister in the Prime Minister's Department Abdul Rahman Dahlan during a press conference at a hotel in Kuala Lumpur, Malaysia, on Tuesday. Saudi Arabia and Malaysia signed four major agreements Monday that will go a long way in cementing ties between the two countries. (AP Photo/Daniel Chan)
Updated 28 February 2017
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Deal with Petronas gives Saudi Aramco 50% stake in Malaysian oil venture

KUALA LUMPUR, Malaysia: Oil major Saudi Aramco has signed a $7 billion deal to take a 50 percent stake in a mega Malaysian oil refinery project, in a pact official said will help Saudi Arabia increase trade in Southeast Asia.
Aramco inked the agreement Tuesday with Malaysia’s national oil company Petronas, which is developing the $27 billion refinery and cracker plant in southern Johor state.
Officials have said the deal will make Aramco the single largest investor in Malaysia.
Saudi’s Energy Minister Khalid Al-Falih said the Malaysian deal will help expand Aramco’s portfolio ahead of its initial public offering next year, which is touted to become the world’s largest share sale.
The deal was signed as Saudi King Salman visited on a multi-nation tour to build up economic ties with Asia.


Potential SABIC deal would affect Saudi Aramco IPO time frame, says CEO Nasser

Updated 20 July 2018
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Potential SABIC deal would affect Saudi Aramco IPO time frame, says CEO Nasser

JEDDAH: A potential deal to buy a stake in petrochemical maker SABIC would affect the time frame of Saudi Aramco's initial public offering (IPO), the oil firm's president and CEO Amin H. Nasser said Friday. 

The IPO of around 5 percent of Aramco, which was initially to take place this year but is now more likely to happen later, would be the world's biggest listing, raising up to $100 billion.

Nasser said that buying a stake in a chemical company like SABIC would positively affect Aramco's revenue, Al Arabiya reported.

“We are still in the very early stages of the discussion to buy a stake in SABIC,” the Aramco CEO said.

“Aramco is ready for the initial offer and the timing remains subject to the state's decision.”

Saudi Aramco said on Thursday it is looking at the possibility of buying a stake in SABIC, a move that could boost the state oil giant’s market valuation ahead of the planned IPO.
Aramco said in a statement that it was in “very early-stage discussions” with the Kingdom’s Public Investment Fund (PIF) to acquire the stake in SABIC via a private transaction. It has no plans to acquire any publicly held shares, it said.
In a separate statement, PIF also said talks about a sale were in early stages. “There is a possibility that no agreement will be reached in relation to this potential transaction,” it said.