• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 4 hours Biden admits he has been tested for Cognitive Decline several times. Didn't show any proof of test results.
  • 29 mins Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 2 hours During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 17 hours Apology Accepted!
  • 3 hours Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 5 hours The Political Genius of Donald Trump
  • 20 hours U.S. natural gas at major disadvantage in Europe and China.
  • 21 hours Biden came out of his basement today (Thursday) and said , "we have 120 Million deaths from Covid 19.
  • 4 hours Why Oil could hit $100
  • 21 hours Putin Paid Militants to Kill US Troops
  • 1 day Per most popular Indian websites it was Indian troops not Chinese troops breach of LAC that caused the clashes. If you know any Indian media that claim to the contrary please provide the link
  • 1 day The world is headed for big problems - interview with very smart economist
  • 1 day CoVid in Spain, 9 months before China
Why Power Companies Can’t Ditch Coal Just Yet

Why Power Companies Can’t Ditch Coal Just Yet

The electric industry’s decarbonization program…

Lithium Prices Are Set To Rally

Lithium Prices Are Set To Rally

The European Union’s green recovery…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

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





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