Saudi Aramco will invest $300 billion in the oil and gas sector over the next decade to maintain oil and gas supplies, the company’s CEO said Tuesday in Istanbul.
Speaking at the World Energy Congress in Istanbul, of which Anadolu Agency is the global communication partner for 2016, Saudi Aramco CEO Amin Nasser said that fluctuations in oil prices will also affect natural gas prices.
He shared his concerns that not enough investment will be made in oil and gas in the long term due to social pressures, regulatory pressures and the move towards cleaner technology.
However, he asserted that oil and gas will still play a significant role in the future amid a recovery in the oil market, and consequently they will continue to invest in the downstream and chemicals sector by pledging $300 billion to maintain their production position and to have spare capacity.
Nasser noted that global energy needs are about 280 millions barrels of oil equivalent of which 80 percent is derived from fossil fuels.
He commented that with the maturity of oil and gas fields, the extraction of resources has become more challenging and are harder to operate.
In reaction to discussions on Saudi Aramco’s initial public offering, Nasser said that an offering of the much talked about five percent is very big compared to other oil companies.
“When you say 5 percent of Aramco, that will be one of the biggest listings in the world, and I do not think there will be a listing of that size in the future,” Nasser said.
“But hopefully, with enough liquidity in different stock markets, it will be accommodated. We are optimistic seeing that such demand means the market stock will recover. We expected to see more of a recovery in 2017 and by 2018 it will be almost right,” concluded Nasser.
Saudi Aramco also has signed a number of memorandum of understandings (MoUs) with leading Turkish companies to further strengthen commercial and investment relations between Saudi Arabia and Turkey on Tuesday in Istanbul.
The signed MoUs will enable Turkish companies to bid for Saudi Aramco projects.
Turkish companies already play a role in a diverse range of business activities including power generation, airport construction and management, petroleum and roadways and some of the companies have an existing track record of investment in Saudi projects.