Saudi Arabia Is Buying Up European Oil Majors

[Tom Kirkman + 8,860]

This is ... disconcerting.  Is this a bizarre idea of MbS to corner the global oil majors? 

Taking a cue from CCP - style infiltration into control of W.H.O.?  (Sorry, couldn't resist the double jab.)

Article by Irina Slav:

Saudi Arabia Is Buying Up European Oil Majors

The Saudi sovereign wealth fund has bought stakes worth a combined $1 billion in four European oil majors: Shell, Total, Eni, and Equinor, the Wall Street Journal reported citing unnamed people in the know.

The Saudi fund, the sources said, was taking advantage of the oil price collapse that drove down oil companies’ stocks, making them a bargain for those with the money to buy. The fund may well continue to build stakes in large industry players, too.

The Saudi Public Investment Fund manages more than $300 billion in assets, and the primary vehicle of the Kingdom’s economic diversification push spearheaded by Crown Prince Mohammed. Amassing large stakes in oil majors is hardly the diversification one imagines for an oil-dependent economy.  ...

 

[U_P + 22]

Tom, I work for one of those companies. It is just a financial move, they do not have the weight (in terms of shares) to decide anything really. It does not make much sense from a diversification perspective, but since they can manipulate the oil market, they can manipulate the value of those stocks as well and therefore they can make nice trades...

[James Regan + 1,776]

1 hour ago, Tom Kirkman said:

This is ... disconcerting.  Is this a bizarre idea of MbS to corner the global oil majors? 

Taking a cue from CCP - style infiltration into control of W.H.O.?  (Sorry, couldn't resist the double jab.)

Article by Irina Slav:

Saudi Arabia Is Buying Up European Oil Majors

The Saudi sovereign wealth fund has bought stakes worth a combined $1 billion in four European oil majors: Shell, Total, Eni, and Equinor, the Wall Street Journal reported citing unnamed people in the know.

The Saudi fund, the sources said, was taking advantage of the oil price collapse that drove down oil companies’ stocks, making them a bargain for those with the money to buy. The fund may well continue to build stakes in large industry players, too.

The Saudi Public Investment Fund manages more than $300 billion in assets, and the primary vehicle of the Kingdom’s economic diversification push spearheaded by Crown Prince Mohammed. Amassing large stakes in oil majors is hardly the diversification one imagines for an oil-dependent economy.  ...

 

This almost looks like it was planned?

[the_phoenix612 + 9]

2 hours ago, U_P said:

Tom, I work for one of those companies. It is just a financial move, they do not have the weight (in terms of shares) to decide anything really. It does not make much sense from a diversification perspective, but since they can manipulate the oil market, they can manipulate the value of those stocks as well and therefore they can make nice trades...

RDS market cap: $153.76B

Total market cap: $98.94B

Eni market cap: $36.91B

Equinor market cap: $44.7B

Cumulative: $334.31B 

Saudi purchase: 0.299% of cumulative market cap

I'm also an employee of one of these companies. I'm neither impressed nor worried by these Saudi purchases. 

[John Foote + 1,135]

4 hours ago, Tom Kirkman said:

This is ... disconcerting.  Is this a bizarre idea of MbS to corner the global oil majors? 

You know I think oil and gas is safe long term game. But a traders game in the near term. Fine for the financial services market perhaps, but not my personal cup of tea.

Having KSA invest in other oil and gas companies is fine with me. Motivate them to be responsible for the sake of their own investments.

However, if I was an investor is a company the Saudi's invested it, I'd seriously think of divesting. Their recent investment track record is pretty poor. 

Now instead of their fiasco investment in We Work it will be in We Drill.

One reason you know Vision 2030 was doomed. To meet goals their investment portfolio would have to be the best in the world, far eclipsing the strong returns Norway and Singapore manage.

[Chris Tarjeft + 22]

4 hours ago, Tom Kirkman said:

This is ... disconcerting.  Is this a bizarre idea of MbS to corner the global oil majors? 

Taking a cue from CCP - style infiltration into control of W.H.O.?  (Sorry, couldn't resist the double jab.)

Article by Irina Slav:

Saudi Arabia Is Buying Up European Oil Majors

The Saudi sovereign wealth fund has bought stakes worth a combined $1 billion in four European oil majors: Shell, Total, Eni, and Equinor, the Wall Street Journal reported citing unnamed people in the know.

The Saudi fund, the sources said, was taking advantage of the oil price collapse that drove down oil companies’ stocks, making them a bargain for those with the money to buy. The fund may well continue to build stakes in large industry players, too.

The Saudi Public Investment Fund manages more than $300 billion in assets, and the primary vehicle of the Kingdom’s economic diversification push spearheaded by Crown Prince Mohammed. Amassing large stakes in oil majors is hardly the diversification one imagines for an oil-dependent economy.  ...

 

I would take this an excellent sign as a World Wide Industry Rebound incoming very soon (not 10 years from now like the Nancy's are posting).  Is it manipulative to help crash oil prices while simultaneously buying these stakes?  Yes, very.  Is it fair?  Sure, all is fair in Business.  Trump just said "In this Country we want to be sure our energy companies remain strong."  They are not going to let the industry fail even if it has to take a loss for a few years.