• 4 minutes Trump has changed into a World Leader
  • 7 minutes China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 8 minutes Indonesia Stands Up to China. Will Japan Help?
  • 10 minutes US Shale: Technology
  • 13 minutes Which emissions are worse?: Cows vs. Keystone Pipeline
  • 17 minutes Shale Oil Fiasco
  • 2 hours Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 18 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 3 hours Phase One trade deal, for China it is all about technology war
  • 11 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 4 hours Might be Time for NG Producers to Find New Career
  • 14 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 18 hours Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 13 hours Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 16 hours Wind Turbine Blades Not Recyclable
  • 16 hours Denmark gets 47% of its electricity from wind in 2019
  • 1 day Beijing Must Face Reality That Taiwan is Independent
Why Oilfield Service Giants Are Dumping Assets

Why Oilfield Service Giants Are Dumping Assets

The three biggest oilfield service…

What’s Next For Oil? No One Seems To Agree

What’s Next For Oil? No One Seems To Agree

While many of the headlines…

Russian Funds May Invest In Aramco’s IPO To Boost Oil Ties

Oil

Russian pension funds are mulling over investing in Saudi Arabia’s oil giant Aramco when it launches its initial public offering expected later this year, in a bid to boost the Saudi-Russian partnership, the chief executive of Russia’s state investment fund told Reuters on Tuesday. 

“We see great interest in the Aramco IPO from Russian pension funds as well as from our Chinese partners,” Kirill Dmitriev, chief executive of the Russian Direct Investment Fund (RDIF), told Reuters on the sidelines of the World Economic Forum in Davos.

Back in 2015, RDIF and Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), announced a partnership to invest in projects in Russia, such that could strengthen trade, economic, and investment co-operation between the two countries. Under the agreement, the Saudi fund will invest US$10 billion in the partnership.

Russia and Saudi Arabia should continue to cooperate in oil policies for many more years, said Dmitriev, who was the first Russian official to suggest two years ago that Moscow should cooperate with OPEC in a joint OPEC/non-OPEC production cut pact.

Over the weekend, the energy ministers of Russia and Saudi Arabia reiterated their commitment to the production cut deal, with Saudi minister Khalid al-Falih suggesting that there was “readiness to continue cooperation beyond 2018.”

Speaking to Reuters today about the possible Russian participation in Aramco’s IPO, Dmitriev noted:

“Russia already has significant positions in the oil business so it is hard to expect us taking a very significant stake during the IPO.”

Related: Saudis Unmoved By Oil Price Surge

Chinese investors such as sovereign wealth funds and major state companies could also be pursuing buying into Aramco when it lists its shares. Such a move could give China a stake in the lowest-cost oil producer and major exporter of the commodity that Beijing will continue to use in growing volumes in the foreseeable future.

The planned sale of 5 percent of the oil giant could bring Saudi Arabia US$100 billion, if Saudi officials’ valuation of the company at US$2 trillion stands. Analysts value the Kingdom’s oil giant at much less, with the majority putting the valuation at between US$1 trillion and US$1.5 trillion.

Earlier this month, Saudi Arabia was said to have shortlisted New York, London, and Hong Kong for the foreign exchange for Aramco’s IPO, with the three exchanges being considered either singly or a combination of two of them, or even all three.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | 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