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.


Iraq’s southern oil exports approach record high

Updated 43 min 17 sec ago
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Iraq’s southern oil exports approach record high

  • Southern Iraqi exports in the first 19 days of September averaged 3.6 million barrels per day
  • The increase follows June’s pact among OPEC and allied producers to boost supply after they had curbed output since 2017 to remove a glut

LONDON: Oil exports from southern Iraq are heading for a record high this month, two industry sources said, adding to signs that OPEC’s second-largest producer is following through on a deal to raise supply and local unrest is not affecting shipments.
Southern Iraqi exports in the first 19 days of September averaged 3.6 million barrels per day, according to ship-tracking data compiled by an industry source, up 20,000 bpd from August’s 3.58 million bpd — the existing monthly record.
The increase follows June’s pact among OPEC and allied producers to boost supply after they had curbed output since 2017 to remove a glut. Iraq in August provided OPEC’s second-largest increase as shipments drop from Iran, which is facing renewed US sanctions.
A second industry source who tracks shipments also said exports this month had averaged 3.6 million bpd, reflecting smooth operations at export terminals and no sign that unrest in Basra, Iraq’s second city, was disrupting flows.
“There were fears that the protests would get to the terminal,” this source said. “But so far, there is no impact.”
Protests in Basra against Iraq’s political elite erupted in July. In early September, Basra airport was attacked with rockets a6nd protesters briefly took oilfield workers hostage.
Before the June OPEC deal, Iraq had been boosting exports from southern terminals to offset a halt in shipments from the northern Kirkuk region last October after Iraqi forces seized control of oilfields there from Kurdish fighters.
Northern exports have held steady in September, averaging around 400,000 bpd so far, according to shipping data and one of the industry sources. This is up from about 300,000 bpd in July but short of levels above 500,000 bpd in some months of 2017.
On June 22-23, OPEC, Russia and other non-members agreed to return to 100 percent compliance with output cuts that began in January 2017. That amounted to an increase of about 1 million bpd, according to OPEC’s de facto leader, Saudi Arabia.
A group of OPEC and non-OPEC ministers and officials monitoring the agreement are meeting on Sunday in Algeria and will discuss proposals on how to divide the increase, sources have told Reuters.
Iraq has said it is ready to boost output and in August pumped an extra 90,000 bpd, OPEC’s second-largest increase after Libya, according to analyst and oil-industry media estimates compiled by OPEC. Iraq itself said production in August was steady.