Mubasher TV
Contact Us Advertising   العربية

KSA, oil giants put heads together ahead of Aramco IPO

KSA, oil giants put heads together ahead of Aramco IPO
(Photo Credit: Arabianeye-Reuters)

Riyadh - Mubasher: In an attempt to diversify investments in the field, Saudi Arabia is discussing investment opportunities in the oil and gas sector with major international companies, including BP, Chevron, and Eni, Reuters reported on Tuesday.

Citing four industry sources, Reuters stated that outgoing, as well as incoming investments are being looked at, including Aramco considering gas investment ventures abroad with the likes of Italy’s Eni.

Aramco is currently arming itself for an initial public offering (IPO), putting the stakes of the biggest oil producer in the world, according to Rystad Energy, into the hands of the public with an expected valuation of $2 trillion.

Despite Reuters reporting on current talks between the Kingdom and major oil companies, Chevron, BP, Aramco, and Eni declined to officially comment on the issue to the agency.

Saudi Arabia is looking to “increase the use of gas for domestic power generation [on the long-term], thus reducing oil burning at home and freeing up more crude for export”, which could serve as a boost to Aramco’s valuation as it generates more revenue from exports, according to Reuters.

Industry experts told the agency that a diversification in gas assets would be attractive to investors, as Riyadh is planning to increase domestic gas prices. This comes as Saudi’s Vision 2030 paves the way for a new gas strategy to keep up with rising domestic demand, which stipulates Aramco doubling its gas production.

While unnamed sources continue to affirm that major oil giants had reportedly expressed interest in partnering with Aramco or investing in oil production in the Red Sea several times, no official comment has been made regarding the matter.