Saudi energy minister still expects Aramco IPO in 2018

Saudi Arabian Energy Minister Khalid al-Falih said on Thursday that he still expected national oil giant Saudi Aramco to conduct a public offer of its shares in 2018.

Falih was speaking at a conference in Abu Dhabi. Riyadh has said it plans to sell up to 5 per cent of the company in what could be the world’s largest initial public offer of equity, raising tens of billions of dollars.

Officials have been working since early last year on complex details of the offer, including legal conditions, how to value Aramco’s assets, and on which exchanges its shares would be listed.

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Al-Falih also said that he expected tightness in the global oil market in two or three years.

He predicted global demand for oil would grow by well over one million barrels per day in 2017.

The oil market has been moving towards a balance of supply and demand and December’s agreement by OPEC and non-OPEC producers to cut output will accelerate that process, he said.

The deal is for six months and producers will consider later whether to renew it, he added.