An audit of Saudi Aramco’s oil reserves done ahead of a planned IPO has found the state oil giant “to have higher reserves than it previously reported,” Reuters reports, citing sources familiar with the matter.
Saudi Arabia’s oil, which is easily recoverable from the ground compared with shale sources found in the United States and elsewhere, is the world’s largest proven reserve. According to Reuters‘ sources, the independent external audit has found Saudi Arabia’s proven oil reserves to be at least 270 billion barrels, which is slightly higher than the 260.8 billion barrels the company reported in its 2016 annual review – and for 30 years previously.
The audit was conducted by companies including DeGolyer and MacNaughton, and Baker Hughes’ Gaffney, Cline, and Associates, OilPrice.com reports.
Saudi Aramco’s long-awaited IPO “could be delayed until 2019 at the earliest,” the Financial Times reported last month, because advisors on the IPO are “struggling to arrive at the $2 trillion valuation sought by Saudi’s crown prince, Mohammed bin Salman.”
But the Financial Times also noted that high oil prices on international markets could help Saudi Aramco achieve the valuation it wants – if oil prices continue to climb to $120 a barrel.
