Aramco chief says all work needed for IPO to be done by second half of 2018

Saudi Aramco CEO Nasser Amin said that “all the work-streams” needed for the oil giant’s public listing would be completed by the second half of 2018. (Reuters)
Updated 04 April 2018
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Aramco chief says all work needed for IPO to be done by second half of 2018

  • New maritime industries complex and King Salman Energy City to be fully operational in 2022
  • 2 "Giga" projects would create 180,000 jobs in KSA and contribute $16 billion to national GDP
LONDON: Saudi Aramco CEO Amin Nasser said that “all the work-streams” needed for the oil giant’s public listing would be completed by the second half of 2018.
But the Aramco boss did not reveal any clues about the likely location for the listing.
“On the question of where we will be listed, I will park that,” he said.

The London Stock Exchange, as well as exchanges in New York and Hong Kong are competing to be the international location for the initial public offering that could raise about $100 billion and value the state-owned oil from at as much as $2 trillion.
Nasser told the London forum that Aramco viewed gas as a “significant” growth area, and he was trying to capture growth in different parts of the world, both upstream and downstream.
There has been speculation Aramco might do gas deals with Russia and even buy shale assets in the US.
During a panel discussion about KSA “giga-projects,” Nasser flagged up major projects in KSA where the oil company was active in promoting development and growth.
For example, he talked about a new maritime industries complex in the Kingdom that is a joint project with global companies such as Hyundai Heavy Industries.
“When fully operational in 2022, this integrated maritime yard will be one of the largest full-service maritime facilities,” he said.
He also mentioned King Salman Energy City.
“The industrial manufacturing center will be developed over 500,000 square meters on land allocated for energy-related industries,” he said.
The first phase is expected to be completed in the second quarter of 2018.
Last year, US-based drilling and oil service firm Schlumberger said it would develop a manufacturing facility within the park.
Nasser said the new development would bring major manufacturing capacity to the Kingdom, with the potential to develop export markets.
He added the idea was “to bring the jobs and investment that are crucial to both Saudi Aramco’s IKTVA (In-Kingdom Total Value Add) development program, and the Kingdom’s Vision 2030.”
He estimated that the two giga projets would create 180,000 jobs in KSA and contribute $16 billion to national GDP.


‘No sign of waning appetite for oil’

Updated 22 September 2018
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‘No sign of waning appetite for oil’

  • Oil is so entrenched in the modern world that demand is still rising by up to 1.5 percent a year
  • Of the almost 100 million barrels of oil consumed daily, more than 60 million bpd is used for transport

LONDON: Global oil consumption will reach 100 million barrels per day (bpd) — more than double the level of 50 years ago — in months, according to an industry report by Reuters.
Despite overwhelming evidence of carbon-fueled climate change and billions in subsidies for alternative technologies such as wind and solar power, oil is so entrenched in the modern world that demand is still rising by up to 1.5 percent a year, said the report.
There is no consensus on when world oil demand will peak but much depends on how governments respond to global warming, according the International Energy Agency (IEA), which advises Western economies on energy policy.
OPEC Secretary-General Mohammed Barkindo told a conference in South Africa on Sept. 5 that global consumption would hit 100 million bpd this year, sooner than anyone had expected.
With a sophisticated global infrastructure for extraction, refining and distribution, oil produces such a powerful burst of energy that it is invaluable for some forms of transport such as aircraft.
Of the almost 100 million barrels of oil consumed daily, more than 60 million bpd is used for transport. Alternative fuel systems such as battery-powered electric cars still have little market share.
Much of the remaining oil is used to make plastics by a petrochemicals industry that has few alternative feedstocks.
Although government pressure to limit the use of hydrocarbons such as oil, gas and coal is increasing, few analysts believe oil demand will decrease in the next decade.
If the current mix of policies continues, the IEA expects world oil demand to rise for at least the next 20 years, heading for 125 million bpd around the middle of the century.