The Middle East’s biggest oil producer, Saudi Aramco, is planning international expansion via partnerships as it prepares for its IPO, encouraged by a government eager to modify its economic options.
The crude giant is seeking joint foreign ventures in the U.S. and all across Asia, CEO Amin Nasser commented to journalists at a press meeting at the company's HQ this week.
"There is a definite opportunity for international development looking at the current oil market," he said, adding that he thought global demand would increase by approximately 1.3 million barrels per day.
The changes to the company are part of a much bigger strategy for a profound re-examination of Saudi Arabia’s economy in response to an estimated dip in crude.
The kingdom is planning to sell up to 6% of Aramco via IPO and has requested that the company play a more dominant role in the industrial sector with a view to diversifying the oil-centric national economy.
Nasser declared "We will stay on point with Aramco,", as he expounded on the crude giants massive production capabilities of 10.2 million barrels per day average last year and that it will take “only a fortnight longer” to finish a recent development project at the Shaybah field.
The area’s output will increase to 1 million barrels per day once infrastructure work is complete, the development aimed at improving the kingdoms oil quality and dealing with decreased output at several other fields as they tap out, Nasser added.
The company also says a large shipbuilding complex that it is constructing at Ras al-Khair will be 100% operational in the next 5 years.
The primary area of the specialized port, part of Riyadh's strategy to seed industrial diversification, will be open in just 2 more years, and it’s long term purpose is to construct platforms and oil tankers.
It’s expected the project will create 85,000 new jobs, according to the company’s own press releases, and allow the kingdom to cut down on its imports by $11bn, while boosting the nations GDP by a cool $16bn.
Jonathon Price, Director of Mergers & Acquisitions at Nikko Holdings said “The timing is perfect for the recent announcements, and that’s no coincidence. With the company preparing for a forthcoming IPO, they are pretty much obliged to let potential investors know of development plans. Having said that, the new industrial port at Ras al-Khair is something that you would most certainly brag about anyway. It’s going to be an impressive complex.”
