[M_B_S]

The vital question is:

WHO wants to buy the saltwater in Ghawar?


PEAK GHAWAR was years ago.....


PEAK OIL

The real M_B_S is asking....
Archiv look:
https://www.energyandcapital.com/articl ... f-oil/1204
http://www.theoildrum.com/node/9045

[Cog]

The Oil Drum? Might as well quote Zerohedge. The Saudi's are merrily pumping away with no end in sight.

[AdamB]

$this->bbcode_second_pass_quote('', '
')IF you have ever wondered what national oil companies are for, one of the bigger ones offers this pithy take on the cover of its annual report: This isn't strange; national oil companies, or NOCs in industry parlance, are often their country's biggest corporate entity, employer and source of public revenue. The question is what they offer international investors, especially as we await the initial public offering (IPO) of the biggest NOC of all, Saudi Arabian Oil Co, or Saudi Aramco. The proliferation of listed NOCs is mostly a post-2000 phenomenon. These include Russia's Rosneft Oil Co PJSC; China's PetroChina Co Ltd, China Petroleum & Chemical Corp, and CNOOC Ltd; Petroleo Brasileiro SA of Brazil; and Norway's Statoil ASA. The timing, amid a boom in oil prices and emerging markets, was no accident. The IPO pitches shared common themes like sheer scale and

[AdamB]

$this->bbcode_second_pass_quote('', ' ')
Saudi Arabia is considering increasing the size of a $10 billion loan after banks on the 2016 deal offered to lend more, people familiar with the matter said. Lenders are in talks with the government to increase the amount it borrowed, said the people, asking not to be identified because the discussions are private. Another option being discussed is to arrange new bilateral or club facilities with the banks, they said. The kingdom could add as much as $5 billion to the loan, one of the people said. Final decisions haven’t been made and discussions may not result in a new deal, the people said. Saudi Arabia’s ministry of finance didn’t immediately respond to requests for comment. The world’s biggest oil exporter plans to borrow about $31 billion this year to bridge an expected budget deficit of $52 billion and fund growth plans after

[AdamB]

$this->bbcode_second_pass_quote('', ' ')
The banks that will advise and execute Saudi Aramco’s stock market listing are expected to share a tiny proportion of the $100 billion Riyadh hopes to raise in its initial public offering, according to banking sources and industry insiders. Investment banks involved in the listing IPO-ARMO.SE are expected to share a fifth of a percent of the money raised, they said, but noted that could still amount to about $200 million. The listing of 5 percent of the state oil company’s shares could be the largest IPO in history, almost five times the size of current record holder Alibaba (BABA.N), the Chinese e-commerce company which went public in New York in 2014. Banks are competing fiercely for mandates in the IPO because it is viewed as a gateway to other deals expected to emerge from Saudi Arabia’s plan to revamp its economy via

[ROCKMAN]

Hopefully I explain for the last time. The Saudi govt will not be offering any its oil for sale. They are offering access to the potential profits of a corporation…Aramco. Owning 5% of the Aramco stock does not grant any of those new shareholders ownership of 1 bbl of Saudi Arabian oil. Even more important it does not allow any ability to impact the prices or production rates of Saudi oil. In fact, being a very small minority owner doesn’t allow them to have any impact on the operations of the Aramco company. Aramco may technically soon be called a public company but it will still be controlled entirely for the sole benefit of the Saudi govt…the 95% ownership.

Aramco is a CORPORATION that has a production sharing agreement with the Saudi govt which, to the best of my knowledge, has never been made public. Question: how much profit did the Aramco CORPORATION make in 2017? I don't think that has been made public either. But given the Saudi govt taxed Aramco at 85% in 2017 I doubt it was very much. And that's the tax on its NET INCOME: remaining revenue after paying for all capex, production costs and overhead. In reality the Aramco CORPORATION may have made little to no profit since the day it was formed.

The Saudi govt has promised to reduce the tax rate to 50% when the IPO is placed. But there is no law preventing it from increasing it back to 85% (or 99%) 6 months after the IPO. It has the freedom to change its CORPORATE tax rate as was just done in the USA.

[rockdoc123]

$this->bbcode_second_pass_quote('', 'T')he Saudi govt will not be offering any its oil for sale. They are offering access to the potential profits of a corporation…Aramco. Owning 5% of the Aramco stock does not grant any of those new shareholders ownership of 1 bbl of Saudi Arabian oil.

[Peak_Yeast]

@Rockdoc: Where do you see your profit coming from when purchasing these shares?

[rockdoc123]

$this->bbcode_second_pass_quote('', '@')Rockdoc: Where do you see your profit coming from when purchasing these shares?

[AdamB]

$this->bbcode_second_pass_quote('', '
')Mohammed bin Salman bin Abdulaziz al Saud, the Crown Prince of Saudi Arabia, will be leaving his kingdom next month for a three-week charm tour. His agenda hasn’t yet been revealed, but sources say MbS (as he’s known) will start his tour March 7 in London, then head to New York, Washington, San Francisco and maybe even Texas. It was supposed to be his father, King Salman bin Abdulaziz al Saud, 82, visiting the United States, as agreed in a phone call between him and President Donald Trump last September. But the monarch has allowed himself to be sidelined, to underscore that his 33-year-old crown prince is the one running the show. Prince Mohammed is handsome, charismatic and sports a luxurious beard. He’s imposing, like his 6’4” grandfather, Ibn Saud, the founding King. The last time the prince came to the U.S., in

[AdamB]

$this->bbcode_second_pass_quote('', ' ')
The IPO of Saudi Aramco is “proceeding very well,” CEO Amin Nasser told the crowd at the CERAWeek conference here in Houston today. He didn’t elaborate much, saying that the ultimate decision to take the plunge would lay with the Saudi government — namely Crown Prince Mohammed bin Salman. A domestic listing on Riyadh’s Tadawul exchange would be the easiest avenue, though sources close to the Saudis say there’s a real desire for shares to trade in New York, London or Hong Kong. Nasser insisted that the world is far from seeing Peak Oil demand. “Oil will maintain its key role in the global energy mix for the forseeable future,” he said, given that 99% of all vehicles on the road remain powered by internal combustion engines. To meet that need, said Nasser, the industry must invest $20 trillion in oilfield capex over the

[Cog]

I'll be staking a position in the Saudi IPO when it comes about. Not a huge one but sizable. People seem to forget that Saudi Arabia spokesmen can control rises and falls in this new stock offering at a whim. I intend to take advantage of that.

[rockdoc123]

I too will be looking to buy some Aramco. I do believe, however, that the IPO will be fully subscribed by insiders so when it breaks on the market it will run higher so fast that the chances of getting a good price are seriously diminished. What usually happens is the initial enthusiasm lasts for a day or two and then the stock drops back to the IPO price or close to it. That is what I'm looking for and will buy in then.

[AdamB]

$this->bbcode_second_pass_quote('', ' ')
Saudi Arabia’s energy minister hinted the initial public offering of the state oil company Aramco could be delayed until 2019, pushing back a central plank of Crown Prince Mohammed bin Salman’s plan to modernize the economy. Khalid Al-Falih also said the IPO, potentially the largest ever, would be “anchored” by a listing on Saudi Arabia’s local exchange and any international listing would be announced in due course, if at all. “Between December 31st and January 1st there is no value lost for the kingdom,” Al-Falih said in an interview in London. “So, I don’t see this artificial deadline that you refer to as being significant.” Until recently, Saudi officials insisted the IPO was “on track, on time” for 2018, but two months into the year that deadline is looking harder to meet. Still, Al-Falih, who also serves as Aramco’s chairman, insisted the company

[ROCKMAN]

Finally some details to counter all the bullshit regarding the value of a potential Aramco IPO. Might be a tad difficult to follow if one isn't familiar with huge foreign stock transactions, From

https://www.rigzone.com/news/wire/canad ... 8-article/

Reuters - "Saudi Arabia is increasingly looking to just float oil giant Saudi Aramco locally as plans for an initial public offering (IPO) on an international exchange such as London or New York hang in the balance, sources close to the process said.The kingdom is counting on being awarded emerging market status by index complier MSCI in June to help Saudi Aramco attract Western funds, in addition to cornerstone investors from China, Japan and South Korea, the sources said. "I would guess it is about evens that there will be no international IPO," said a high-level source familiar with the preparations, saying they were proving to be a disappointment.

Saudi Arabia is planning to list up to 5 percent of Saudi Aramco in an initial public offering that could value it at up to $2 trillion and make it the world's biggest oil company by market capitalisation. Saudi Energy Minister Khalid al-Falih said last week that Aramco was too important to risk listing in the United States because of litigation concerns, such as existing lawsuits against rival oil companies for their role in climate change."

And the likely reason for not doing the IPO on a London or US exchange: "While London is preferred over New York, the requirement by both for greater disclosure of sensitive information on Aramco than the Hong Kong exchange is viewed as a drawback by some Saudi officials and advisers, the sources said."

Yep, nothing like investing big $'s in the stock of a company that can keep details of its operations a secret. LOL

[rockdoc123]

$this->bbcode_second_pass_quote('', 'A')nd the likely reason for not doing the IPO on a London or US exchange: "While London is preferred over New York, the requirement by both for greater disclosure of sensitive information on Aramco than the Hong Kong exchange is viewed as a drawback by some Saudi officials and advisers, the sources said."

Yep, nothing like investing big $'s in the stock of a company that can keep details of its operations a secret. LOL

[Cog]

The crown prince is meeting with Trump shortly. I'm thinking the topic will come up.

[M_B_S]

https://www.almasdarnews.com/article/ye ... commander/

Yemeni Army has database of ‘Saudi economic targets’ – commander
By News Desk - 27/05/2018

A major commander in the Yemeni Armed Forces was interviewed by the Tasnim News Agency on Sunday; he would discuss a number of topics, including the ongoing war and Saudi Arabia’s participation.

Colonel Aziz Rashid told Tasnim that his forces have an entire database of Saudi economic targets, which could come under attack at any moment from their missiles and unmanned aerial vehicles (UAV).....
*****************
To proof he is correct his missile force needs a >big hit< the whole world feels.

M_B_S

[Plantagenet]

The WSJ is reporting that Saudi Arabia is not going to go through with its plan to sell shares in Aramco and its oil assets

doubts-grow-aramco-ipo-will-ever-happen-

The sale has already been postposed several times. The reason its looking like the whole things is going to be cancelled is that Saudi is unwilling to disclose information about the condition of their oil assets and oil reserves, apparently because they don't want the world to know how close to depletion Ghawar and their other legacy oil fields are in.

This is consistent with news reports that KSA is telling Trump its impossible for them to raise their production to bring down oil prices.

IF KSA production can't be raised any higher, then that is big red flag.

It suggests KSA has peaked

If KSA is now backing out of their planned IPO because they don't want show anyone else their books...

It suggests KSA oilfields are in trouble, and production is at or near the peak.

I repeat---its looks like this is it. It looks like KSA IS AT OR VERY NEAR ITS PEAK RIGHT NOW.

Cheers!

[Pops]

I think this is where I came in...