MoU signed between Lamprell and Saudi Aramco

According to The Wall Street Journal, al-Falih said at a conference in Riyadh that the next five years will be critical for the oil market and supply and demand will balance at a “moderate” price.

“If we do it, the percentage will not be such that it’s going to move the needle significantly in terms of the government proceeds”, al-Falih said, a reference to the potential listing.

In a recent report, the Saudi Arabian National Commercial Bank (NCB) said that oil oversupply will continue and will keep oil prices at an average of $50 a barrel in 2016.

“The reserves would not be sold, but the company’s ability to produce from the reserves is being studied”, Khalid al-Falih told Al Arabiya News on the sidelines of the World Economic Forum in Davos.

The Dubai-based broadcaster reported the comments Sunday.

The world’s biggest oil producer is spending as much now as it did before the crash in crude prices, signaling no surrender in Saudi Arabia’s battle with rivals.

Saudi Arabia’s oil production peaked at 10.6m bpd in June 2015, while Iraq has increased output over the year by around 700,000 barrels, reaching 4.2m bpd in November last year, the NCB said.

Unlike others who store crude on ships while they look for buyers, “Saudi Aramco and therefore Saudi Arabia does not ship a single barrel without a customer…” Khalid al-Falih, chief executive officer of Aramco, said the company was still considering many options concerning how the reserves would factor into what was available to be publicly traded.

Government dignitaries, business experts and leading academics from Saudi Arabia and overseas are taking part in the ninth annual Global Competitiveness Forum, which will conclude today (January 26) in Riyadh, Saudi Arabia.

Al-Falih also says the potential share flotation could take place on local or worldwide markets.

Deputy Crown Prince Mohammed bin Salman, who heads the main economic affairs council, “is really keen to make this happen”, Majnouni said in an interview.