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.


Saudi Aramco boss reveals gas and LNG ambitions amid petchems push

Updated 56 min 26 sec ago
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Saudi Aramco boss reveals gas and LNG ambitions amid petchems push

  • Saudi Aramco CEO Amin Nasser: We are in discussions in different countries with a lot of partners. We are reviewing these opportunities to make final decisions in terms of investment
  • Amin Nasser: A lot of it is in partnerships with leading companies around the world and it is either in gas investment, LNG investment or both

London: Saudi Aramco is eyeing gas and LNG acquisitions as it also prepares for the potential purchase of the Kingdom’s biggest chemical maker, CEO Amin Nasser revealed on Tuesday.

He made the disclosure in an interview with Bloomberg TV on the sidelines of the World Economic Forum in Davos.

“We are in discussions in different countries currently with a lot of partners. We are reviewing these opportunities to make final decisions in terms of investment,” Nasser said.

“A lot of it is in partnerships with leading companies around the world and it is either in gas investment, LNG investment or both.”

Aramco has also been in discussions with a credit rating agency ahead of a planned bond sale.

It comes ahead of the potential purchase of Saudi Basic Industries Corporation (SABIC), the Kingdom’s biggest chemical maker and a key part of Aramco’s ambitions to grow its global petrochemicals business.

“We will decide soon how much we would like to take from the bond market. Definitely it is going to be an international bond. We are currently in discussion with regard to how much and where,” Nasser said.

He said that the purchase price for SABIC was still under discussion.

“We are in discussion currently with the Public Investment Fund about acquisition of 70 percent of the share of SABIC. We are in discussion with regard to the price at this stage,” he said.

Earlier this month Saudi Energy Minister Khalid Al-Falih said Aramco would issue bonds in the second quarter of 2019.

Aramco’s planned acquisition of SABIC is expected to involve buying all or nearly all of the 70 percent stake in the chemicals company held by the Public Investment Fund (PIF), the Kingdom’s principal sovereign wealth fund.

Nasser said that there was no plan to acquire the 30 percent of the company that is currently publicly traded in Saudi Arabia.