Photo: Fahad Shadeed / Reuters
The Saudi authorities have limited the term of the license, which allows the country’s largest companies, Saudi Aramco monopoly to extract oil, writes the Financial Times. This may be the first step towards economic reforms in the Kingdom.
Still, Saudi Aramco had a perpetual license for the production of Saudi oil. Now, her time is limited — according to the newspaper, 40 years. The newspaper’s sources suggest that a formal change may be in order to bring the local economy to global standards, including the relationship of the largest companies with the government. Such a move could attract investors to the impending release Saudi Aramco on the stock exchange.
The government was considering a 20-year term for licenses (as is the case in the world), but in the end decided that this would adversely affect the performance of the company.
August 22, Reuters with reference to its sources in government circles reported that the impending 2016 IPO cancelled. Later, the Minister of energy Khalid al-falih called this information speculation and said that the plans of the authorities remain in force.
Output Saudi Aramco on the stock exchange should become one of the key stages in a large scale program of reform in Saudi Arabia, dubbed “Vision 2030”. Authorities hoped to gain for a five percent stake is $ 100 billion.
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