Published: Sat, October 12, 2019
Economy | By

Saudi Aramco chief: attacks may continue without worldwide response

Saudi Aramco chief: attacks may continue without worldwide response

The Aramco IPO was delayed in 2018, reportedly over Saudi officials' concerns about public scrutiny of the company's finances, the Wall Street Journal said.

The moves, which came as the state-run company said it had reinstated all output halted by attacks on its main crude-processing facility last month, show preparations are quickening for the listing, with the goal of offering shares on the Saudi bourse as soon as November.

Saudi Aramco wanted to tackle the targeted $2 trillion valuation for its initial public offering (IPO) by increasing dividends, paying fewer taxes and discovering cornerstone investments from major Asian oil producers.

Attacks such as those on September 14, which sent oil prices up as much as 20%, may continue if there is no concerted global response, Amin Nasser told the Oil & Money conference in London, Reuters reported.

Saudi Aramco's oil processing facilities at Abqaiq and Khurais were attacked by missiles and drones on September 14, shutting down 5.7 million barrels per day (bpd) of its production, or more than 5% of global supplies.

The absence of an worldwide resolution to take action against these operations could embolden attackers and put global energy security at risk, Nasser said.

"You heard the minister of foreign affairs and I think he spoke enough about [where] the attacks [are] coming from".

Yemen's Houthi group claimed responsibility for the attacks, but a USA official said they originated from southwestern Iran.

Riyadh blamed adversary Iran for the strikes, a charge Tehran denied.

He also stated that the attacks resulted in no reduction in revenue for the company because it continued to supply its customers as planned.

Saudi Aramco is moving forward with plans for an IPO following devastating attacks on one of its facilities, and new details suggest shares will be available before the year's end.

Aramco is poised to release its prospectus October 25 in Arabic, and follow up with an English version two days later, sources told WSJ.

He added Aramco was on track to regain its maximum oil production capacity of 12 million barrels per day by the end of November.

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