Saudi Arabian Oil Co. (Saudi Aramco) is proceeding with its long-planned initial public offering of equity shares.
The company has received approval to offer shares on Taduwal, the Saudi stock exchange, which favors local investors but allows foreign investment.
An IPO of 5% Aramco was part of a package of reforms introduced in April 2016 by then Deputy Crown Prince Mohammad bin Salman aimed at modernizing the Saudi economy and lowering dependence on revenue from oil production (OGJ Online, Apr. 26, 2016). Bin Salman now is crown prince.
A Taduwal announcement said the approved IPO is for “a portion” of Aramco shares and said the percentage “will be determined at the end of the book-building period.”
The IPO could be expanded to exchanges elsewhere.
The announcement reported Saudi reserves at yearend 2018 at 256.9 billion boe.
It said average production last year was 10.3 million b/d of crude oil and blended condensate, 200,000 b/d of unblended condensate, 1.1 million b/d of natural gas liquids, 8.9 bscfd of natural gas, and 1 bscfd of ethane.
Aramco’s average upstream lifting cost last year was $2.80/boe. Its average capital expenditure was $4.70/boe.
The announcement said Aramco can produce 12 million b/d of crude for 1 year “during any future planning period, after taking into account all planned capital expenditures and maintenance, repair and operating costs, and after being given 3 months to make operation adjustments.”