Saudi Prince says Aramco will have a valuation above $2 trillion

Aramco to be publicly listed by Saudi Arabia

Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman believes the Saudi Arabian Oil Company will have a valuation above $2 trillion when it eventually becomes the world’s largest initial public offering.

Prince Mohammad says the valuation process for Saudi Aramco has not been completed at this time.

The government plans to turn Aramco into a holding company and will sell less than 5% of that entity, he said. Aramco units may be offered for sale at a second stage, he also revealed.

On Monday the “Saudi 2030 Vision” was unveiled. That vision includes a complete overhaul of the countries economy which includes a reduction on the kingdom’s reliance on oil.

“If Saudi Aramco is listed then it must announce its statements and it will do that every quarter,” the Prince said. “It will be under the supervision of all Saudi banks, all analysts, all Saudi thinkers. Even more all international banks and research and planning centers in the world will monitor it intensively.”

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Aramco currently has crude reserves of 260 billion barrels or almost 10 times those of Exxon Mobil Corp. The country currently outputs more than 10 million barrels of oil per day.

“In 2020, I think we will be able to live without oil,” Prince Mohammed said. “We will need it but we can live without it.”

The country also has about 6% of global uranium reserves and uses only 3 to 5% of its mining resources such as gold, silver and phosphate, the Prince claims.

Written by Lane Hanson

Lane Hanson

Lane Hanson is BusinessPundit's Economy Editor. He reports on major changes in the US and Global Economies.