Saudi Aramco World’s Largest Oil Exporter Seeks $10 Billion

Saudi Aramco World’s Largest Oil Exporter Seeks $10 Billion
Saudi Aramco World’s Largest Oil Exporter Said to Seek $10 Billion

Image Source: gCaptain

The world’s largest oil exporter, Saudi Arabian Oil Company is reportedly in talks with the banks to have a $10 billion loan that can be used for funding acquisitions and its other investments, according to sources.

Saudi Aramco, officially the Saudi Arabian oil company and popularly known just as Aramco is a Saudi Arabian natural petroleum and natural gas company based in Dhahran in Saudi Arabia, is in the negotiating phase with both international and local banks to take over an undrawn loan of $4 billion; shared by sources on the condition of anonymity as the outlines are confidential. Saudi Aramco narrated the banks that it anticipated making confirmed withdrawals under the brand’s new facility as per the reports.

Also Read: Russia Gears Up Its Oil Sales To Asia

Saudi Aramco is extending into refining and petrochemicals, wishing to boost and forge its ties with Asia. It purchased a $2 billion share in S-Oil Corporation which is a petroleum and refinery company, headquartered in Seoul, Korea. South Korea, which is the third-largest oil purifier last year, is also a promising bidder for the minority share in the synthetic rubber entity of the German chemical company, Lanxess AG. A spokesperson for Saudi Aramco wasn’t available to comment on this particular matter.

The consistent fall in oil prices in June, last year may result in merger and acquisition in the energy sector. Declining crude has ruined oil company profits and affected primary producers and drillers to hack spending. Merger and acquisition activity mostly in the energy industry rose 68% to  $ 35 billion in 2014, as per research reports. French oil company, Total S.A. may take benefits of the situation and make the most of this deterioration in the industry to make acquisitions, Chief Executive Officer Patrick Pouyanne asserted in last February. So consolidation is the order of the day.

This loan by Saudi Aramco might be the largest in the entire Gulf region since year 2011, according to the latest data. Saudi Electricity elevated a 51 billion Saudi Riyal that is $13.6 billion loan in June, 2011 and Dubai World was more likely in the agreement for more than 10 billion dollars of loans after endorsing for a debt re-establishing  with creditors in March 2011. Saudi Aramco is now involved in talks to raise $ 8 billion to spend on the extension of its Rabigh Refining & Petrochemicals Co., called as Petro Rabigh, a joint project with Sumitomo Chemical Co., was reported by leading news in October.

Saudi Arabia, the largest Arab economy is funding billions of dollars to expand its presence in the oil industry value chain and diversify its presence. Saudi is investing in the creation and expansion of refineries and chemical plants. Aramco and Dow Chemical Co. anticipate initiating production at a $20 billion chemicals project this year.

Also Read: Canada And Saudi Arabia Are On The Verge Of Oil Showdown, The Prices Of Oil Is Slowly Depreciating

Brent crude, a financial criterion for more than half of the entire world’s oil, has revived a bit after having crashed almost 50 % last year.

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