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Saudi Aramco's ambition is to become a global refining and chemical processing company, taking advantage of the fastest growing oil industry sectors while also supporting the Kingdom's economic diversification. .
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 Aramco's president, Amin Nbader, in an interview Dhahran, Saudi Arabia. The expense would be added to the Company's proposed acquisition of a controlling interest in Sabic, the largest chemical company in the Middle East, with a transaction worth approximately US $ 70,000 million.
"We need a major 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.
Aramco, which also provides for what would be the largest equity sale in the world, plays a central role in attempts to transform the Saudi economy. Prince Mohamed bin Salman advocates 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. – the official name of Sabic – from the Sovereign Public Investment Fund.
Financing by Sabic
Aramco plans to close the negotiations with the fund and "all the financial instruments are on the table" to settle the deal, said Nbader.
Aramco's interest in Sabic lies partly in the forecast that demand for petrochemicals will represent a growing share of production. gross global. According to the International Energy Agency, the use of petrochemicals will increase faster than any other segment of the oil industry.
The Sabic acquisition project, however, required to defer until 2020 or 2021 the IPO of Aramco. Prince Mohammad said in an interview in October
"The OPI is a decision made," Nbader said. "It's only a matter of time."
Aramco, whose official name is Saudi Arabian Oil Co., wants to convert 3 million barrels of crude oil per day – about 30% of its daily production – into chemicals. It also aims to more than double its refining capacity by the middle of the next decade.
"Market volatility can be absorbed when there is a balance between upstream and downstream," Nbader said. "It's the goal of our strategy."
A 32% drop in the price of oil from October 3rd could complicate the country's financial plans. The international outrage surrounding the badbadination of Saudi dissident Jamal Khashoggi at the country's consulate in Istanbul could also do so. Nbader downplayed concerns about Aramco 's attractiveness as an investment.
Demand for oil is healthy, he said. "Next year will be the same in terms of additional demand."
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