Marina Schwarz

Surprise! Aramco Scraps International Listing Plans

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Saudi Arabia could never have listed ARAMCO. The reasons are several:

1) Saudi keeps the oil reserves a state secret. The total Oil in Place was said to be 530 gbl. The extractable will be about 50-55% which makes it 270-300GBL. The total production of oil from 1950 till date is about 170 billion barrels. So, remaining reserves is about 100-130 billion barrels. However, Saudi still claims 270 GBL

2) Cartelisation and collusion of oil may not be appreciated by the market regulators of any international market

3) It is unwise to list ARAMCO in foreign stock exchange as that will give undue control to foreign regulators and hence foreign govt

4) ARAMCO is a cash cow that is netting huge money for Saudis and there is no need to share the oil money as dividend with anyone if the ownership is fully with the state. In the long run, the dividend money outflow may end up as a loss.


I never understood why people were going Gaga about ARAMCO listing and the need for oil price to be $70 for share price to be high etc

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