Audit finds Aramco oil reserves slightly higher than reported: sources

An audit of Saudi Aramco's oil reserves - an essential part of the preparatory work for its planned initial public offering - has found the state oil giant to have higher reserves than it previously reported, sources familiar with the matter told Reuters.

Saudi Arabia's reserves of easily recoverable oil have long been the world's largest.

Two sources, speaking on condition of anonymity, said the independent external audit has found the 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.

Having an internationally recognized reserves audit has become a key task for Aramco as it seeks to become the world's most valuable company when it lists a 5 percent stake in an IPO later this year or early 2019.

Aramco's official reserves figures were "more than confirmed" said one source. "This is good for the company's valuation," another source said.

Aramco did not immediately respond to a request for comment.

Aramco seeks majority stake worth Rs 3 trn in Maharashtra refinery: Report

Oil giant Saudi Aramco is looking to buy a majority stake in a proposed refinery and petrochemical complex valued at Rs 3 trillion ($46.10 billion) in the western Indian state of Maharashtra, local daily Economic Times reported, citing people familiar with the matter.

This comes as Saudi Arabia, the world's biggest oil exporter, is trying to beat out Iraq to become the biggest crude supplier to India, the world's third-largest oil importer.

The state-owned Saudi oil company is also in talks with Indian state-run refiners for marketing rights over the fuel and petrochemicals produced at the complex along with an assurance that the refinery would mostly use Saudi oil, the newspaper added.

Indian Oil Corp Ltd owns 50 percent of the complex, while Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd have the rest.

China offers to buy 5% of Saudi Aramco directly: Sources

China is offering to buy up to 5 percent of Saudi Aramco directly, sources said, a move that could give Saudi Arabia the flexibility to consider various options for its plan to float the world's biggest oil producer on the stock market.

Chinese state-owned oil companies PetroChina and Sinopec have written to Saudi Aramco in recent weeks to express an interest in a direct deal, industry sources told Reuters. The companies are part of a state-run consortium including China's sovereign wealth fund, the sources say.

Saudi Arabia's Crown Prince Mohammed bin Salman said last year the kingdom was considering listing about 5 percent of Aramco in 2018 in a deal that could raise $100 billion, if the company is valued at about $2 trillion as hoped.

"The Chinese want to secure oil supplies," one of the industry sources said. "They are willing to take the whole 5 percent, or even more, alone."

PetroChina and Sinopec declined to comment.

The initial public offering (IPO) of Saudi Aramco is the centrepiece of an economic reform plan to diversify the Saudi economy beyond oil and it would also provide a welcome boost to the kingdom's budget which has been hit by low oil prices.
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