The Saudi Arabian state-owned oil company Saudi Aramco plans to invest up to US$334bn by 2025 in order to maintain its oil production capacity. The fundings will be allocated to service facilities, infrastructure projects, drilling of new potential projects and the development of unconventional resources.
This announcement fits into the framework of the In-Kingdom Total Value Add (IKTVA), which was outlined in 2016. This initiative already highlighted the need for a US$300bn investment over the next 10 years (starting from 2016). One IKTVA’s goals is to double the percentage of locally produced energy-related goods and services (known as local content) up to 70% of the total spent by 2021.
Besides, Saudi Aramco still plans to enter the initial public offering (IPO) procedure in 2018 as planned previously. Up to 5% of the company could be listed on the Riyadh stock exchange and the IPO itself is estimated to raise about US$100bn.