Crown Prince Mohammed bin Salman said in a televised interview on Tuesday that Saudi Arabia was in talks with a foreign company to sell 1% to Saudi oil company Aramco.
“Negotiations are underway to acquire 1% of the capital of Aramco, one of the world’s leading energy companies, which will greatly benefit Aramco’s sales in this country.”MBS Aramco had already sold a portion of its capital in December 2019, and received $ 4.49.4 billion. Earlier this month, Aramco sold a minority stake in a pipeline company to US firm EIG Global Energy Partners for $ 12.4 billion.
Diversification of its economy
These removals illustrate Riyadh’s desire to raise funds to finance its efforts to diversify its economy. Last month, the company announced it would cut profits by 44.4% by 2020, causing serious trouble for its largest partner, the state of Saudi Arabia. Aramco’s debt rose as Saudi Arabia, the world’s largest oil exporter, suffered a drop in barrel prices and a drop in global consumption due to the Kovit-19 epidemic.