Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Saudi Arabia could sell more of its crown jewel. China is the most likely buyer

Saudi Arabia could sell more of its crown jewel. China is the most likely buyer

Saudi Arabia is considering selling part of its giant state oil company to a major foreign investor, likely from China.

The kingdom's crown prince, Mohammed bin Salman, confirmed the possible sale of a 1% stake in the world's biggest oil company on Tuesday. The stake would be worth about $19 billion based on Aramco's market value.

"There is a discussion now about the acquisition of 1% of Aramco by a global leader in the energy field," bin Salman, the de facto leader of Saudi Arabia, said in a rare televised interview broadcast on Saudi state media. "It will be a very important deal to boost Aramco sales in a very large country," he added.

China is the largest buyer of Saudi crude, importing more oil from the kingdom than it did from any other country in 2020, according to data from China's General Administration of Customs.

Aramco has other large customers in Asia and in a report last month it said it is investing in crude oil sales and trading operations in China, India, Southeast Asia, Japan and South Korea.

The potential Aramco buyer has "clearly got to be an Asian national oil company," said Bernstein senior analyst Oswald Clint. "Most of their crude goes in that direction," he added.

Saudi Arabia sold about 1.7% of Aramco in 2019 in the largest IPO in history, raising $29.4 billion to help fund bin Salman's Vision 2030 plan to wean the kingdom off oil and develop other areas of the economy. Aramco was worth about $1.7 trillion at the time.

But the partial privatization on the Riyadh stock exchange relied heavily on local and regional investors, meaning it raised far less than the $100 billion originally envisaged.

A sale to a foreign investor could help raise more money to fund bin Salman's vision. But oil companies in the United States and particularly in Europe are trying to shift away from oil and have unveiled plans to invest billions of dollars into clean energy projects. Major institutional investors are also trying to de-carbonize their portfolios.

The rise in shale production in recent years means the United States also has a greater degree of energy independence and less incentive to be so deeply engaged in the Middle East, said Hasnain Malik, head of emerging markets equity strategy at Tellimer, an investment bank based in Dubai.

"China ... may see an opportunity to deepen its own relationship," Malik told CNN Business.

The benefits of owning such a "tiny equity stake in a national champion of another country" were unclear, he added, suggesting that any deal was more likely to be grounded in geopolitics rather than economics.

According to the Financial Times, Saudi Arabia has held talks with Mukesh Ambani's Reliance Industries about buying a stake in the Indian company's refining and petrochemicals arm with a mixture of cash and Aramco shares. Several people said that while the share sale touted by bin Salman could be referring to the Reliance deal, it was more likely to be related to separate discussions with Chinese and other investors, the newspaper reported on Wednesday.

In the Tuesday interview, bin Salman said that some of Aramco's shares could also be transferred to Saudi's Public Investment Fund and that the kingdom had no plans to "get rid of oil."

"The investment opportunities for Aramco are tremendous," he said, adding that details on the sale of Aramco shares could be revealed within a year or two.

Aramco shares currently trade at around 35.80 Saudi riyal each ($9.55), valuing the company at $1.9 trillion.

The crown prince's economic diversification efforts were dealt a by the coronavirus pandemic, which torpedoed demand for oil as global travel came to a standstill and much of the world plunged into a deep recession. Aramco's profits nearly halved to $49 billion in 2020.

After several months in which production was curtailed to mop up the supply glut, major oil producers led by Saudi Arabia agreed earlier this month to gradually increase output over the next three months following a sharp increase in oil prices and calls from the United States to keep energy affordable.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×