Tags: saudi | aramco | global | oil | gas | exploration | ft

FT: Saudi Aramco Plans Global Oil, Gas Exploration

saudi aramco corporate logo symbol emblem on computer pad screen

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By    |   Tuesday, 12 February 2019 01:43 PM

Saudi state energy giant Aramco reportedly intends to branch out into international oil and gas exploration.

Such a move, reported by the Financial Times, will see the company take on Exxon Mobil and Royal Dutch Shell.

Aramco has historically stuck to producing Saudi Arabia's vast, low-cost oil reserves, the world's second largest, CNBC explained.

But Saudi Energy Minister Khalid al-Falih now confirms in an interview with the Financial Times that the company will also look overseas for oil and natural gas prospects.

"We are no longer going to be inward-looking and focused only on monetizing the kingdom's resources," Falih told the FT. "Going forward the world is going to be Saudi Aramco's playground."

Meanwhile, Saudi Aramco is pushing for a top credit rating ahead of its first international bond sale, but Saudi Arabia’s sluggish economy may curb the state-owned oil firm’s ambitions, Reuters reported.

Aramco intends to issue its first U.S. dollar-denominated bonds, expected to be at least $10 billion, in the second quarter to help finance the acquisition of a stake in SABIC, the world’s fourth-largest petrochemicals maker.

Chief Executive Amin Nasser said last week that Aramco was talking to credit rating agencies ahead of its debut on the international capital markets, which comes after it last year pulled what would have been the biggest ever stock flotation.

Credit ratings allow investors to compare and assess the credit quality of bond issuers and their debt securities and are important in determining how much borrowers have to pay.

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Saudi state energy giant Aramco reportedly intends to branch out into international oil and gas exploration.
saudi, aramco, global, oil, gas, exploration, ft
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2019-43-12
Tuesday, 12 February 2019 01:43 PM
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