Saudi Arabia to announce slight rise in oil, gas reserves after audit

  • Saudi Arabia to announce slight rise in oil, gas reserves after audit

Saudi Arabia to announce slight rise in oil, gas reserves after audit

"The results point out that the Kingdom's reserves of oil and gas are bigger than what we have been announcing", Falih asserted.

Saudi state oil giant Saudi Aramco plans to issue its first global bonds in the second quarter of 2019, the country's energy minister Khalid Al-Falih said Wednesday, Kallanish Energy reports.

Al-Falih also added that the Aramco bond is expected to be in USA dollars with the debt sale ensuring that Saudi Aramco will disclose its accounts to investors for the first time since its nationalization around forty years ago.

Oil rose for a 10th consecutive day in London, heading for its longest run of gains on record, as OPEC cutbacks reined in supply while reassurance from the Federal Reserve buoyed the outlook for demand.

Al-Falih, noted that this also highlighted three other important realities: That these vast reserves are also among the lowest cost in the world, backed by world-leading economies of scale.

"This reflects the continued direction and support provided to the Saudi petroleum industry by Custodian of the Two Holy Mosques King Salman and Crown Prince Muhammad Bin Salman, deputy premier and minister of defense", Al-Falih said.

The plans for the bond, first reported by Bloomberg News previous year, came as the Saudi Arabian government reactivates a plan to sell shares in the company.

Saudi Aramco has been in the global fuel retail business for decades through global partnerships - Motiva in the United States, Showa-Shell in Japan, S-Oil in South Korea, and FREP and SSPC in China are examples of the Saudi Aramco presence in the fuel retail arena with more than 11,000 operating stations globally. The kingdom had initially targeted 2018. But demand was high, at US$27 billion, according to HSBC. Anheuser-Busch InBev NV took out US$46 billion in 2016 to finance the takeover of SABMiller Plc.

Entering the debt market is a move aimed at helping the company to finance its planned acquisition of a 70% stake in petrochemical firm SABIC from the kingdom's Public Investment Fund (PIF).

"It's not going to be anywhere near the number that's been rumored", he said. At that time, the company had about US$20 billion of borrowings, offset by US$19 billion of cash and equivalents. The nation's actual oil and gas holdings are bigger than the announced numbers, which are for proven reserves and don't include those that are probable, Al-Falih told a news conference in Riyadh.