Al-Falih says Saudi Aramco IPO to be ‘most transparent’

The initial public offering (IPO) of state-run oil company Saudi Aramco will be “the most transparent national oil company listing of all time,” Saudi energy minister Khalid Al-Falih was quoted as saying by the Financial Times.

“Everything that Saudi Aramco has, that will be shared, will be verified by independent third parties,” Falih said, adding this would include financial statements, “reserves … costs (and) profitability indicators.”

The listing could also help propel Saudi Arabia into other sectors such as robotics, and the “internet of things,” Al-Falih was quoted as saying by FT at a climate conference in Marrakesh.

According to official estimates, the size of proven reserves of the world’s largest oil exporter has remained close to the 260 billion barrels ever since the kingdom completed the nationalization of Saudi Aramco in the 1980s, FT reported.

International energy executives and investors, however, have been unable to verify the government’s figures.

The details on the oil firm will likely affect oil markets as it will reveal how long one of the biggest crude producers can continue to pump.

Saudi Arabia’s sovereign bond prospectus last month said the country’s reserves could last for approximately 70 years, adding that the estimate had not been reviewed by a third party.

The kingdom’s reserves are not expected to be part of any sale, but will factor into the company’s valuation, which is estimated to be as high as $2 trillion.