Minister of Energy: Inclusion of Aramco will not be traded with any other interest

Khalid al-Falih confirmed that the kingdom did not have any target number in oil production (File Photo: Reuters)

The Saudi Arabian Minister of Energy, Industry and Mineral Resources, Khalid al-Falih, announced that the inclusion of Aramco, one of the largest oil producers in the world, in the stock markets was “a pure financial issue and will not be brokered with any other interest in the kingdom or elsewhere”.

On the sidelines of the visit of Prince Mohammed Bin Salman to China, Falih told Al Arabiya that all the stock markets “are deploying all efforts to include the company’s share in their markets, including China”. He stressed that the kingdom “is examining all the available options,” and that the inclusion issue “is judiciously being studied.”

Falih confirmed that the kingdom did not have any target number in oil production, adding that the production depends on the customers’ demand that is submitted weeks in advance. He added that he was not worried about the demand on oil despite the price fall, but said he saw it as sustainability and continuity.

Falih said that Saudi Arabia is fully operating two new refineries in the kingdom, namely the Yanbu refinery and another new refinery in al-Jubail with a production capacity exceeding 400 thousand barrels per day for each.

He pointed out that the maximum production capacity of the Saudi kingdom amounts to 12.5 million barrels per day. However, the kingdom is still showing serious responsibilities in terms of its productivity policy, at a time when the market is flooded with oil. He said that Saudi Arabia did not find it necessary to reach its maximum production limits now or in the near future.

Meanwhile Falih confirmed that Aramco had reached an advanced stage in the negotiations for the partnership in the two refineries with the Chinese National Petroleum Corporation, pointing out that the old project between Aramco and Sinopec suffers from fragile economic feasibility.

Falih also tackled the ongoing negotiations to reach an agreement concerning the storage of oil in China, both on the commercial level or the support of the Chinese government, revealing that a memorandum of understanding was signed with the Chinese government for the strategic storage of oil.

He explained that the current projects that are being examined by Aramco in China are worth more than 20 billion dollars.
Regarding the competition with Russia and Angola, targeting the Chinese market, Falih denied the existence of a pricing war, saying that “the price of our oil is based on the prices of Dubai and Oman, which are competitive and fair for the consumers.”
Falih added that “Russia's move into the Chinese market is normal and we do not see it as a threat to Saudi Arabia.”

See the interview with the Saudi energy minister in full in Arabic here

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Last Update: Wednesday, 20 May 2020 KSA 09:48 - GMT 06:48
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