UAE’s main oil company in talks over offshore oil stakes

Cars are seen an ADNOC petrol station in Abu Dhabi, United Arab Emirates, in this July 10, 2017 photo. (REUTERS)
Updated 07 August 2017
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UAE’s main oil company in talks over offshore oil stakes

DUBAI: The UAE’s main state oil company says it plans to divvy up its offshore oil operations and is in “advanced discussions” with multiple companies interested in stakes.
The Abu Dhabi National Oil Company (ADNOC) said on Monday that more than a dozen companies are involved in the talks, and that they include both existing partners and new firms. It did not name them.
International shareholders with existing stakes in offshore fields include BP, Total and Exxon Mobil.
ADNOC plans to split its offshore oil concessions into two or more separate operations and will retain a 60 percent stake in the fields.
ADNOC last month announced plans to create joint ventures with international investors and may float some shares in an effort to raise billions of dollars.


Saudi Aramco aims to buy controlling stake in SABIC: Sources

Updated 32 min 13 sec ago
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Saudi Aramco aims to buy controlling stake in SABIC: Sources

  • Riyadh-listed SABIC, the world’s fourth-biggest petrochemicals firm, has a market capitalization of 385.2 billion Saudi riyals
  • The potential acquisition would affect the time frame of Aramco’s planned initial public offering set for later this year

DUBAI: Saudi Aramco aims to buy a controlling stake in petrochemical maker SABIC, possibly taking the entire 70 percent stake owned by Saudi Arabia’s sovereign wealth fund, two sources familiar with the matter told Reuters.
Late last week Aramco confirmed a Reuters report that it was working on a possible purchase of a “strategic stake” in Saudi Basic Industries Corp. (SABIC) from the Public Investment Fund, the kingdom’s top sovereign wealth fund.
Aramco’s initial thinking is to buy the full stake owned by the Public Investment Fund (PIF), but if that fails to materialize Aramco could end up with a stake in SABIC of more than 50 percent, making it a majority owner, the sources said.
No final decision has been made on the size of the stake as the discussions are still at a very early stage, they added.
Aramco declined to comment. The PIF did not respond to a Reuters request for comment.
Riyadh-listed SABIC, the world’s fourth-biggest petrochemicals firm, has a market capitalization of 385.2 billion Saudi riyals ($103 billion).
The potential acquisition would affect the time frame of Aramco’s planned initial public offering set for later this year, the state oil giant’s chief executive, Amin Nasser, said in a TV interview on Friday.
Aramco plans to boost investments in refining and petrochemicals to secure new markets and sees growth in chemicals as central to its downstream strategy to cut the risk of an oil demand slowdown.
Aramco plans to raise its refining capacity to between 8 million and 10 million barrels per day, from around 5 million bpd now, and double its petrochemicals production by 2030.
Aramco, the world’s largest oil producer, pumps around 10 million bpd of crude oil.