Aramco CEO slams lack of resolve over attacks

Galtero Lara
Octubre 10, 2019

Big Oil and the largest and yet-to-be-listed oil company in the world-Saudi Aramco-have updated their dividend plans in recent months in a sign that they believe they can raise returns to shareholders even if no one is really certain where oil prices will be a month, a quarter, or a year from now. Aramco didn't immediately respond to an email seeking comment.

Officials have been targeting an Aramco listing on the domestic Saudi Stock Exchange by the end of 2019, and an worldwide listing at some point in 2020.

The attacks on Saudi Arabia's oil facilities last month are expected to impact economic growth this year, the World Bank said in a report.

"The (Aramco) downgrade also took into account rising geopolitical tensions in the region, but also the country's continued fiscal deficit, among other factors", Fitch said. Tehran denies its involvement.

Showing resilience, Aramco said it has restored the lost production as planned and is on track to continue meeting its target to regain its maximum oil production capacity of 12 Mmbpd by the end of November.

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Workers are seen at the damaged site of Saudi Aramco oil facility in Abqaiq, Saudi Arabia, September 20, 2019.

Attacks on Saudi Arabia's Abqaiq processing facility and Khurais field caused its crude output to plummet to 8.45 million b/d in September, according to the latest S&P Global Platts Opec survey. Between 2020 and 2024, if annual dividends are below US$75 billion, "dividends to non-Government shareholders are meant to be prioritised so that they receive their pro-rata share of a $75 Bn equivalent dividend", Aramco says.

At the beginning of the current month, the huge Saudi oil company restored its production at the level prior to the attacks and processed 9.7 million units daily.

Meanwhile, Riyadh is planning to launch Aramco's initial public offering (IPO) later this year in a move to draw in foreign capital and shift the Saudi economy away from oil.

FOX Business' Charles Gasparino reports on Saudi Aramco's IPO in light of drone strike.

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