• 4 minutes End of Sanction Waivers
  • 8 minutes Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 14 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 7 hours Saudi Arabia Says To Coordinate With Other Producers To Ensure Adequate Oil Supply
  • 30 mins US Military Spends at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 10 hours Alliances: Iran And Pakistan To Form Joint Rapid Reaction Force At Border
  • 4 hours Overheating the Earth: High Temperatures Shortened Alaska’s Winter Weather
  • 4 hours Populist Surge Coming in Europe's May Election
  • 1 hour "Undeniable" Shale Slowdown?
  • 4 hours Climate Change Protests
  • 4 hours China To Promote Using Wind Energy To Power Heating
  • 2 hours Gas Flaring
  • 1 hour Don't Climb Onto the $80+ Oil Price Greed Roller Coaster, Please.
  • 1 hour How many drilling sites are left in the Permian?
  • 2 hours O&G now in the Magical Goldilocks Zone of $70 Brent
Alt Text

Why Elon Musk Is Wrong About Hydrogen

Electric passenger vehicles are getting…

Alt Text

Top Heavy Oil Markets Continue To Rally

Oil markets continued their way…

Alt Text

Oil Climbs Higher As U.S. Looks To End Iran Sanction Waivers

The U.S. administration is preparing…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Aramco’s $500 Billion Global Expansion

Saudi Aramco will spend US$500 billion over the next ten years to expand internationally, with a fifth of the total amount earmarked for petrochemical projects and US$160 billion for natural gas projects, chief executive Amin Nasser told Bloomberg in an interview.

Nasser noted that the investment sum was separate from the US$70 billion it is planning to splash on the acquisition of a majority stake in local petrochemical major Sabic. The funding of the acquisition is yet to be determined, however. Earlier reports said Aramco would use US$20 billion from its own cash and raise the rest on international bond markets. Later, it turned out the company was unwilling to make the financial disclosures required when tapping international bond markets, so loans became the one remaining option.

“We need a major acquisition for us to be in different markets quickly,” Nasser told Bloomberg referring to the Sabic acquisition. Petrochemicals demand is seen by many analysts as the primary crude oil demand driver of the future, so it makes sense that a company of the size of Aramco is looking to gain greater exposure to this segment of the industry.

Plans are for Aramco to use almost a third of its daily production rate, or some 3 million bpd of crude oil, to produce chemicals. Also, the company eyes a twofold increase in its refining capacity by 2025. “You can absorb market volatility when you are balanced between upstream and downstream,” the chief executive said. “This is where our strategy is going.”

The Sabic deal seems to be instrumental for this growth in petrochemicals, but it would mean the initial public offering of the Saudi energy giant would have to be postponed. This is what Crown Prince Mohammed told media last month, although the opinion that Aramco has shelved its listing plans indefinitely is winning more and more supporters as time goes by.

Nasser now tells Bloomberg the IPO was still on the table but, “It is about timing.”

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • EdBCBN on November 28 2018 said:
    And yet still no IPO. They're scrambling and don't know what to do.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News