Aramco says IPO on track
Aramco says IPO on track
Saudi authorities are aiming to list up to 5 percent of the world's largest oil producer on both the Saudi stock exchange in Riyadh, the Tadawul, and one or more international markets in an IPO that could raise $100 billion.
“The initial public offering of a stake in Saudi Aramco remains on track,” said Aramco in an email.
“The IPO process is well under way and Saudi Aramco remains focused on ensuring that all IPO- related work is completed to the very highest standards on time.”
Bloomberg reported on Wednesday that the Saudi government is still aiming for the IPO of the state-owned oil giant in the second half of 2018, but that the timetable is getting increasingly tight for what is likely to be the biggest share sale in history.
Aramco has still not chosen an international venue for the listing although New York and London are seen as leading contenders. It has hired advisers for the deal, but has not chosen global coordinators or bookrunners, banking sources have said.
Reuters reported last month that Saudi Arabia favors New York for the main foreign listing of Aramco, even though some financial and legal advisers have recommended London, citing people familiar with the matter.
Saudi Aramco to invest in refinery-petrochemical project in east China
- This is the third such project in China that Saudi Aramco has set its sight on
- Last month, Saudi Aramco signed a long-term deal with the Zhejiang project’s operator Zhejiang Rongsheng to supply crude oil
ZHOUSHAN, China/SINGAPORE: State oil giant Saudi Aramco signed an agreement on Thursday to invest in a refinery-petrochemical project in eastern China, part of its strategy to expand in downstream operations globally.
The memorandum of understanding between the company and Zhejiang province included plans to invest in a new refinery and co-operate in crude oil supply, storage and trading, according to details released by the Zhoushan government after a signing ceremony in the city south of Shanghai.
Zhejiang Petrochemical, 51 percent owned by textile giant Zhejiang Rongsheng Holding Group, is building a 400,000-barrels-per-day refinery and associated petrochemical facilities that was expected to start operations by the end of this year.
This is the third such project in China that Saudi Aramco has set its sight on as it seeks to lock in long-term outlets for its crude oil and produce fuel and petrochemicals to meet rising demand in Asia and cushion the risk of a slowdown in oil consumption.
Last month, Saudi Aramco signed a long-term deal with the Zhejiang project’s operator Zhejiang Rongsheng to supply crude oil.
The oil giant had not yet finalized the size of its stake in the project and still needed to complete due diligence, Aramco’s Senior Vice President of Downstream, Abdulaziz Al-Judaimi, said on the sidelines of the event.
Saudi Aramco expects to supply 170,000 barrels per day of Saudi crude to the refinery in Zhoushan when it starts operations, he said.
The first crude carrier supplying the refinery should arrive in December or January, depending on when the project starts, he added.
Aramco also owns part of the Fujian refinery-petrochemical plant with Sinopec and Exxon Mobil Corp, and has plans to build a 300,000-bpd refinery with China’s Norinco. It is also in talks with PetroChina to invest in a refinery in Yunnan.