Saudi Arabia’s state-owned oil company, Saudi Aramco, is finalising proposals for its initial public offering (IPO), which will be presented to its Supreme Council soon, according to its CEO Amin Nasser. The Supreme Council, which is headed by Deputy Crown Prince Mohammed bin Salman, is implementing economic reforms on the face of declining oil revenues which resulted in a huge fiscal deficit for the oil-rich country. Prince Mohammed said he expected the IPO would value Aramco at a minimum of USD 2 trillion, but that he thought the figure might end up being higher.
The Saudi government would retain sole control over Aramco’s oil and gas output levels, even after the listing, Nasser said.
Nasser also said Aramco was seeking to expand globally via joint ventures in Asia and North America.
“We are looking at the current market status that, even though challenging, is an excellent opportunity for growth,” Nasser said, adding that he was looking at opportunities in the United States, India, Indonesia, Vietnam and China.
Besides proposing to sell a stake in the company, which would require it to release sensitive reserves data, Saudi Aramco is taking a big role in developing industrial projects aimed at stimulating the country’s non-oil related economic sector.