Aramco oil giant could be sold by Saudi Arabia to raise funds

[webfact]

Aramco oil giant could be sold by Saudi Arabia to raise funds

LONDON: -- Saudi Arabia may sell shares in state energy giant Saudi Aramco, the largest oil producer, creating what could be the world's most valuable company.

In an interview in the Economist, deputy crown prince Mohammed bin Salman said the move was being "reviewed".

"We believe a decision will be made over the next few months," he said. Aramco has crude reserves of about 265bn barrels - more than 15% of global deposits - and with falling oil prices a sale would raise revenues for Saudi.

Full story: http://www.bbc.com/news/business-35259190


-- BBC 2016-01-08

[rocketman777]

"reserves of about 265bn barrels" Right in their dreams , its been that since 1990 and thats if you believe their 'adjustment' from their 1989 figure of 173 billion.

And that showed no depletion from 1980

http://www.indexmundi.com/energy.aspx?country=sa&product=oil&graph=reserves

Since they have been pumping at a rate of 8 to 10 mbd say 3 - 4 billion per year . So in reality they probable have less then 100 billion. Assuming the figures for known reserves from 1980 are accurate. This is doubtful when you consider the Ghawar field has been pumping for over 60 years at 5 mbd and accounts for 60–65% of all Saudi production.

So all gone in 25 or so years and thats assuming no increase in production to meet rising increase in consumption world wide (Estimated to be for 2016 1.3 mbd)

[SOTIRIOS]

...they better not be asking for more than 10 cents on the dollar....

..the good news is.......inflated prices for the past 100 years are finally coming to an end......???

...wonder how this came about....and what else is behind this apparent global 'paradigm shift' ...???

[elgordo38]

Who pray tell would want to buy shares in a company selling a product at a loss?

[bkkbarnstormer]

Who pray tell would want to buy shares in a company selling a product at a loss?

Aramco's oil production costs are well below 30usd/bbl. Hence it still makes significant cash flow at current prices.

Govt selling a stake with oil prices at such low levels would show they are panicking about funding their govt budget