• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 2 hours Shale Oil Fiasco
  • 2 hours Everything you think you know about economics is WRONG!
  • 1 hour Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 8 hours USA v China. Which is 'best'?
  • 7 hours Global Debt Worries. How Will This End?
  • 1 day My interview on PDVSA Petrocaribe and corruption
  • 6 hours Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 2 days Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 15 hours Quotes from the Widowmaker
  • 2 days Petroleum Industry Domain Names
  • 14 hours Tesla Launches Faster Third Generation Supercharger
  • 7 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 7 hours Winter Storms Hitting Continental US
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Saudis To Retain Full Control Over Aramco’s Oil After IPO

Saudi Arabia will continue to have full control over the oil wells and production of Aramco, after the much-anticipated initial public offering of around 5 percent of the Saudi oil giant next year, Deputy Crown Prince Mohammed bin Salman said on Tuesday.

“The wells will still be owned by the government. The company only has the right to benefit from the wells. This is the same as before and there are no changes to that,” said the prince on state television, as quoted by Bloomberg.

As for production levels, they will continue to be subject to the OPEC policies and global supply and demand, the prince noted.

According to Financial Times, Mohammed bin Salman said on Saudi television that “production is not a political decision, it is an economic one set by supply and demand.”

The prince also described the local Saudi criticism to the IPO plan as “socialist, communist thinking”, and defended the project as vital for Saudi Arabia’s efforts to diversify away from oil.

The deputy crown prince has said that Aramco’s value could be US$2 trillion, which means that 5 percent would fetch US$100 billion for the Kingdom. But since the staggering US$2-trillion valuation was first aired, institutional investors, fund managers, and industry professionals have been trying to find valuation metrics that add up to this figure. Related: The Return Of Bearishness In Oil Markets

Analysts are mostly valuing Aramco at below US$1.5 trillion, although Saudi Arabia slashed the tax rate on Aramco to 50 percent from 85 percent in a bid to attract international investors and raise the company’s value. The tax rate cut is making the oil giant more attractive to investors, and raises the valuation of its upstream portfolio by around US$1 trillion, according to Rystad Energy.

Most recently, a Wall Street Journal report suggested that officials at Aramco are applying internal value estimates of US$1.3 to US$1.5 trillion to the valuation, calling deputy crown prince’s estimate “unrealistic and mind blowing.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play