Oil giant Aramco plans to invest 500,000 million US dollars

Saudi Aramco It aims to become a global chemicals and refining company and seeks to reap the benefits of the fastest growing petroleum industry sectors, while supporting the economic diversification of the kingdom.

The world's largest oil exporter reserves $ 500 billion to invest in the next 10 years, including $ 160,000 million for natural gas and $ 100,000 million for chemical projects, said the President of Aramco, Amin Nbader, in an interview Dhahran, Saudi Arabia. The expense would be added to the company's acquisition project of a controlling stake in Sabic, the largest chemical company in the Middle East, a transaction of up to US $ 70,000 million.

"We need a big acquisition to be present in different markets quickly, "said Nbader Sabic is present in more than 50 countries and for Aramco," it makes sense "to acquire a business of this size, he added.

Putin blames Trump for high oil prices

Aramco, which also plans what would be the largest equity sale in the world, plays a central role in attempts to transform the Saudi economy. The prince Mohamed bin Salman It promotes a strategy of creating new industries and diversifying the kingdom after decades of dependence on oil sales. Aramco's plan to acquire 70% of Saudi Basic Industries Corp. – official name of Sabic – from the Sovereign Public Investment Fund, is an important part of the transformation.

Sabic Financing

Aramco hopes to conclude negotiations with the fund and "all financial instruments are on the table" to settle the deal, Nbader said.

Part of Aramco's interest in Sabic is predictions that demand for petrochemicals will account for a growing proportion of global oil production. The use of petrochemicals will grow faster than any other segment of the oil industry, according to the International Energy Agency.

The project to acquire Sabic, however, obliged to postpone to 2020 or 2021 the initial IPO of Aramco, said Prince Mohamed during an interview in October.

"The OPI is a decision made," said Nbader. "It's only a matter of time."

Aramco, whose official name is Saudi Arabian Oil Co., wants convert 3 million barrels of crude oil per day -About 30 percent of your daily production- in chemicals. It also aims to more than double its refining capacity by the middle of the next decade.

"Market volatility can be absorbed when you have a balance between upstream and downstream"Nbader says." That's what our strategy is all about. "

A 32% fall in oil prices from October 3rd could complicate the country's financial plans. International outrage after the badbadination of Saudi dissident Jamal Khashoggi at the country's consulate in Istanbul could also do so. Nbader downplayed the fears aroused by Aramco 's call as an investment.

The demand for oil is in good health, he said. "The same thing will happen next year in terms of additional demand"