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Saudi Aramco plans to invest some US$300 billion in upstream oil and gas projects over the next ten years, Aramco’s chief executive Amin Nasser said at the ADIPEC energy conference in Abu Dhabi on Monday.
“This is mainly upstream, onshore, offshore and joint ventures in the kingdom and out of the kingdom,” Reuters quoted Nasser as saying.
As early as in July this year, Nasser said in a speech at the World Petroleum Congress in Istanbul that Saudi Aramco was committed to making long-term investments in oil and gas, because new discoveries are very low and the oil price downturn had wiped out US$1 trillion in investments.
“We plan to invest more than $300 billion over the coming decade to reinforce our preeminent position in oil, maintain our spare oil production capacity, and pursue a large exploration and production program centering on conventional and unconventional gas resources,” Nasser said in July.
Last week, Aramco signed US$4.5 billion worth of total contracts with international companies to boost its gas production and processing capacity, as well as crude oil and gas related facilities for two offshore fields, Zuluf and Safaniyah.
While Aramco is announcing billions of investments in upstream oil and gas developments, the world is looking at how the recent government purge is influencing domestic and international Saudi policies, and investors and fund managers are gauging how this move could affect the interest in Aramco’s IPO.
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Top Saudi officials, including Crown Prince Mohammad bin Salman and Nasser himself, have been ardently affirming for a few weeks that Aramco’s IPO “is on track” for the second half of 2018, as planned.
Most recently, Nasser said on Sunday that preparations for the listing of 5 percent of the Saudi oil giant were proceeding for the IPO next year, although the venue for the international float has not been picked yet. The Saudis are currently studying New York, London, Tokyo, and Hong Kong, according to Nasser.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.