President of Aramco: "SABIC Agreement" will affect the timing of the IPO

Saudi Aramco chairman, Amin bin Hbadan al-Nbader, said that the acquisition of a stake in SABIC, recently announced by the company, would have a positive impact on the revenues of the company. Aramco, pointing out that the agreement would affect the IPO of Aramco. We are still in the early stages of negotiations to acquire a stake in SABIC.

Nbader baderted that Aramco holds an interest in a chemical company that makes it less vulnerable to fluctuations in oil prices and that the purchase of a stake in chemicals such as SABIC has a positive impact on Aramco's revenues.

First step

Nbader said: "We are at a very early stage of discussions with the Public Investment Fund on the acquisition of a strategic stake in SABIC. Saudi Aramco is still evaluating other opportunities for acquisitions

The leader in energy

He explained that the strategic transformation program of Aramco initiated by the 39, business in 2011, set as a goal that the company is one of the world's leading energy companies to become the world's leading enterprise in the field of energy and chemicals.As far as products There are two options in developing new projects such as "Topa Project" or "Acquisitions". In a press release, the chemicals sector is growing at a rate of about 3% faster than the growth rate of the global economy or the total fuel demand and will increase by 50% over the next few years. Next 20-25 years, investing in chemicals is a way to support our refining and marketing business, "We have a very ambitious aspiration in the company's long-term strategy, which is to convert 2 to 3 million barrels of our oil production into chemicals. "

Competitive Position

In response to a question:

Nbader said: The agreement supports more than one strategic objective The decline in international oil prices, refineries and chemicals generate good returns as world crude oil prices fall, especially when Saudi Aramco's business portfolio is rebalanced between oil and gas production, refining and chemicals.

Aramco previously stated that, as part of its strategy of rebalancing its portfolio with a focus on refining and petrochemicals, it has evaluated a number of local and global acquisitions.

A number of media outlets have published information about their intention to acquire shares in Saudi Basic Industries Corporation (SABIC).

Acquisition and Offer

Asked about the impact of the operation on the supply?

We are still at an early stage and very early in the discussions, and there is no doubt that the acquisition shares take place Especially if the transaction is large

The discussions of the agreement must take its actions and steps.In addition, there are capital market regulations related to acquisitions and must be taken into account.If the potential transaction is completed, taking into account the relevant regulations, Will have an impact on the schedule of the plan of set up part of Saudi Aramco to subscribe.

As I pointed out in previous meetings when Saudi Aramco was ready, the timing of a portion of Aramco 's IPO remains a decision of the company. State

Why now?

And answer the timing of the case Why now? Al-Nbader said:

Aramco's strategic transformation program since 2011 aims to transform the company, which has become the world's leading energy company, into a global leader in the sector. energy and chemicals. The chemistry sector has become a key part of the company's strategy.

He adds: The company has achieved several major achievements over the past five years to develop the chemical sector, including projects of Sada and Petro Rabigh, including strategic shares like Lanxis, renowned for its excellence in Industrial rubber industry. About a year and a half ago, a joint venture with SABIC was announced with a capacity of 400,000 barrels a day to convert oil into chemicals and an investment in a technical project that will make a leap from 70 to 80 % 19659005] Acquisition and Acquisition

How to achieve strategic plans and aspirations In recent years, the company has sought to develop in the field of chemistry?

New acquisitions such as PetroRabigh and Topra

Acquisition and acquisition transactions such as the acquisition of 50% of the German company Lanxis two years ago.

Aramco studies all investment opportunities available at national and international level In the field of chemicals in line with its strategies In this context, it is possible to acquire a strategic stake in SABIC, the third largest Saudi company in the world, having excellent relations with Saudi Aramco since its creation