But several sources familiar with official thinking told Reuters that Aramco’s massive size, and the confidentiality surrounding it as the main instrument of the kingdom’s oil policy, pose hurdles to any listing of the parent firm.
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“The reserves would not be sold, but the company’s ability to produce from the reserves is being studied …”
Saudi Aramco, as the world’s largest oil business is known, is still considering “all options” in any future public offering, including the sale of shares internationally, Chairman Khalid Al-Falih said in an interview on Al Arabiya television. Al-Falih spoke on Monday, Jan. 25, 2016, at an investment conference in Saudi Arabia.
“Personally I’m enthusiastic about this step, ” he said, adding, “I believe it is in the interest of the Saudi market, and it is in the interest of Aramco”.
Prince Muhammad bin Salman has supported the shift and told the Economist earlier this month that he supported selling shares of Aramco.
In his letter, Nasser said the Saudi government’s privatization initiative and economic reform agenda are the two key drivers behind the company’s decision to mull an IPO.
The plunge of oil prices since June 2014 has pushed Saudi Arabia’s fiscal position into deficit and spurred the government to examine new ways of expanding its revenue base and diversifying its economy.
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“Saudi Aramco will continue to focus on our long-term vision of becoming the world’s leading integrated energy and chemicals enterprise, and we are dedicated to meeting our commitments to our employees – our most valuable asset in contributing to the company’s outstanding success”, Nasser wrote.
