10-Oct-18, Bloomberg
As Saudi Arabia looks to its oil reserves to underwrite a record share sale, even the kingdom’s crown prince is backing a push into the industry’s less glamorous corners - refining and petrochemicals - to ensure crude keeps paying the bills.
%20Andrey%20Rudakov_Bloomberg.jpg "Saudi looks to petrochemicals for next big projects (c) Andrey Rudakov Bloomberg")
Image: Andrey Rudakov / Bloomberg
State-run Saudi Aramco is working on more than USD100 bn of refining and chemical projects, and a pledge to invest in a USD9 bn complex with Total SA is just the latest step in this expansion. Such downstream investments “create huge opportunities for economic growth and jobs,” according to Crown Prince Mohammed bin Salman.
The world’s biggest oil exporter is seeking to transform its economy to diversify away from a decades-long reliance on crude, to prepare Saudis for a day when electric cars, solar and wind power and better energy efficiency erode global oil demand. Aramco’s plan for what could be the largest initial public offering will help bankroll the transformation, even as the IPO date recedes into the future.