Saudi Arabia reveals rise in oil reserves and commits to Aramco listing

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Saudi Energy Minister Khalid Al-Falih said the Aramco IPO would take place in 2021. (Reuters)
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Saudi Arabia's oil reserves as of Dec. 31 2017 were 264 billion barrels. (Reuters file photo)
Updated 09 January 2019
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Saudi Arabia reveals rise in oil reserves and commits to Aramco listing

  • Saudi’s proven oil reserves at 268.5bn barrels at end 2017
  • Minister pledges to cut oil shipments next month
LONDON: Saudi Arabia has revealed a rise in crude oil reserves following an independent audit, lifting the lid on deposits that have been the subject of intense speculation since the Kingdom revealed plans to sell shares in its national oil company.

The Kingdom’s proven oil and gas reserves stood at around 268.5 billion barrels of oil and 325.1 trillion standard cubic feet of gas as of the end of 2017, the Saudi Energy Ministry said in a statement carried by the SPA state news agency.

It answers a key question for potential investors in the planned share sale of Saudi Aramco, the state-owned company that manages the Kingdom’s vast oil wealth.

“The results point out that the Kingdom’s reserves of oil and gas are bigger than what we have been announcing,” Saudi Energy Minister Khalid Al-Falih told reporters in Riyadh.

Dallas-based consultants DeGolyer and MacNaughton carried out the audit of the Kingdom’s oil reserves.

The minister also pledged to go ahead with the delayed IPO of Aramco despite speculation that it had been shelved.

He said that Aramco would also issue bonds in the second-quarter of the year and that company financial details would be published as part of that process.

The IPO would follow in 2021, he revealed.

The minister  said that Saudi Arabia would cut oil exports next month as it seeks to prevent a glut that could depress prices further.

“We are serious about restoring balance to the market,” he told a press conference in Riyadh “We are concerned about volatility in the oil market. We have seen peaks and drops in prices (that are) completely unjustified by the fundamentals.”

The Kingdom plans to ship about 7.1 million barrels per day (bpd) in February, down from 7.2 million bpd in January.

Turning to Saudi Arabia’s plans to develop nuclear energy, Al-Falih said that the US was a key provider of nuclear technology and that he wanted the US to be “part and parcel” of its nuclear power program.


Ghosn sues Nissan and Mitsubishi for breach of contract: report

Updated 18 July 2019
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Ghosn sues Nissan and Mitsubishi for breach of contract: report

  • Ghosn is seeking up to $16.8 millions in damages
  • He spent over 100 days jailed in Japan over financial misconduct trials
PARIS: Former auto titan Carlos Ghosn, currently under house arrest in Tokyo, is suing Nissan and Mitsubishi in a Dutch court for “improper termination” of his contract, French newspaper Le Figaro reported Wednesday.
Ghosn is accusing the Japanese manufacturers of breaching his contract as an employee of NMBV, their joint subsidiary based in the Netherlands, and seeking up to $16.8 million in damages, it said.
The big-spending former chief of both Renault and its Japanese partner Nissan is awaiting trial in Japan on charges of financial misconduct.
He was kept behind bars for over 100 days before being granted bail and sacked from all his management roles.
Ghosn is accused of under-reporting millions of dollars in income at Nissan and of using company funds for personal expenses — charges he denies.
His lawyers argue that while Ghosn resigned from Renault-Nissan BV (RNBV), he had not done so from NMBV and “the breach of contract” was unwarranted, Le Figaro said.
Nissan and Mitsubishi argue that Ghosn’s contract was invalid as it would not have been submitted to NMBV’s board, according to the daily.
NMBV had thanked Ghosn after a meeting of his board of directors on March 12, the same day as the announcement of its dissolution.
Ghosn’s spokesperson and his lawyer both declined to comment when contacted by AFP.
Le Figaro said the manufacturers were seeking to recover some $8.79 million paid to Ghosn by NMBV between April and November 2018.
Renault announced in early June it was considering taking action against its former boss after it identified $12.36 million of “questionable expenses” linked to Ghosn at RNBV.
The 65-year-old Ghosn was arrested in Japan in November as he stepped off his private jet at Tokyo airport.
His dramatic downfall stunned the business world and laid bare tensions in the alliance between Renault, Nissan and their smaller Japanese partner Mitsubishi.
Ghosn has not been charged in connection with his activities at NMBV.