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Attacks on vital Saudi oil infrastructure that have decommissioned more than half of Aramco's oil output would likely mean the kingdom will not list its oil giant this year, two sources told Reuters directly Aramco.
September 14 attacks on the Abqaiq oil site and the Khurais oil field in Saudi Arabia have worried investors, as the Kingdom has stepped up plans to put Saudi Aramco in the largest ever public offering . Analysts say the heightened security risks following the attacks and Aramco's real ability to restore production could hurt the company's valuation.
Saudi Aramco must now boost the confidence of potential investors, in addition to fully reviving production, said one of the sources to Reuters.
Saudi Arabia has always said that production would be restored in a few weeks rather than a month, with oil production lost during the attacks resuming its vigor early next week.
Prior to the attacks, the Saudi oil giant said it was ready to be listed on international markets, alongside its main listing on the Saudi stock exchange.
Key leaders of the Saudi state oil company reiterated that it was up to the company's sole shareholder, the Kingdom of Saudi Arabia, to decide when the registration will take place.
Even after the attacks, Aramco's CEO, Amin Nasser, continued to say that "we said we were ready and will proceed with the IPO when our shareholder makes the decision".
Aramco would also have meetings this week with more than a dozen new underwriters as part of the IPO process.
Before the attacks, it seems that Aramco could register shares on its national stock market as early as November 2019. After the attacks, it seems that investors and international analysts have begun to take into account the main risks of supply. related to the valuation and the brand of Aramco.
By Tsvetana Paraskova for Oilprice.com
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