The Ministry of Energy, Industry and Mineral Resources of Saudi Arabia has confirmed that the planned stock market flotation (initial public offering or IPO) of the state-run oil and gas company Saudi Aramco is expected to take place within two years. The sale of a 5% stake in the group has been delayed several times, as it was initially announced in January 2016 and expected in late 2018.
Saudi Aramco has been changing its overall strategy recently by releasing an audit of the country's reserves and accelerating its overseas development. These moves are seen as first steps towards transparency and the preparation of the company for its future IPO.
The group is advancing quickly with its expansion projects in Asia, i.e. by joining two refinery projects in China. The company aims at focusing on the development of international operations and not only pushes into overseas exploration and production, i.e. upstream activities, but will also build up a portfolio across the value chain and expand its activities in the midstream and downstream sectors.