National oil giant says investments continue despite low oil prices
Saudi Aramco is still investing in energy capacity despite the crash in oil prices, and says the initial public offering (IPO) being considered could be on the international markets.
Khalid al-Falih, chairman of the national oil giant, told a panel discussion that the company is cutting costs but not investment in capacity, it was reported.
“Our investments in capacity of oil and gas have not slowed down – we have been able to do a lot of cuts in spending by simply driving down costs,” Falih is reported as saying by Reuters.
Falih told the Al Arabiya News Channel that a possible IPO in the company could be on the local or international markets.
“The reserves would not be sold, but the company’s ability to produce from the reserves is being studied,” he is reported as saying at the World Economic Forum in Davos, Switzerland.
It emerged earlier this month that Saudi Arabia is considering selling shares in Aramco, in a move that could create the first listed company valued at more than $1 trillion.
Deputy crown prince Mohammed bin Salman told The Economist magazine that an initial public offering (IPO) of Saudi Aramco was being reviewed and would be decided on soon.
Aramco is the world’s largest oil firm, holding over 15 percent of all global oil deposits. It could become the first listed company valued at $1 trillion or more, according to analyst estimates quoted by Reuters.