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Aramco researcher: Aramco attacks will lead to declining market value

UNITED STATES, WASHINGTON (OBSERVATORY) — Rauf Mammadov, a researcher at the Middle East Institute in Washington, said the attacks on Saudi Aramco’s oil facilities would lead to a decline in the company’s market value and increase investor concerns.

Mammadov said in a statement to Anatolia, Thursday, that the company’s choice to subscribe to the New York Stock Exchange or London, will impose on the management of Riyadh cases to be faced.

He pointed out that the management of Riyadh, has already considered that the market value of Aramco estimated at $ 2 trillion, adding that he is expected to refer to some energy experts that the financial value of the company exaggerated.

“Attacks on Aramco will lead to a decline in the market value of the company and will increase investor concerns,” Mammadov said.

On Tuesday, Aramco Chairman Yasser Al-Rumayyan confirmed during the conference that Aramco’s listing would not be delayed due to sabotage.

He said: The company’s IPO will not be delayed, and will be on time within the next 12 months depending on the market situation.

Saudi Aramco, the Saudi oil giant, is targeting a 5 percent stake in an initial public offering in a process expected to be the world’s largest, with the Saudi government valuing the company at $ 2 trillion.

Regarding that Saudi Arabia would change its oil production strategy to increase Aramco’s shares, Mammadov said: “All oil companies, including Aramco, aim to raise their share prices by increasing oil prices.”

“Since Aramco is the world’s largest oil company and is directly responsible for global energy security, raising crude prices requires it to reassess its geopolitical vision.”

He added: “We saw before the meeting of the Organization of Petroleum Exporting Countries (OPEC), strongly criticized by the Trump administration for high prices, in addition to that high oil prices will benefit Iran from oil exports, and therefore it is not easy for Saudi Arabia to raise oil prices under international conditions.

He explained that the decision to cut OPEC, in line with the interests of Saudi Arabia, but lost its market share in Asia in favor of Russia, “In the past three years, Rosneft has replaced Saudi Aramco to become the largest oil supplier to China.”

On Saturday, Riyadh announced the control of two fires in the facilities “Abqaiq” and “Khurais” of the “Aramco” in the east of the Kingdom, as they were targeted by drones.

These two complexes are the heart of the oil industry in the Kingdom, where they reach most of the crude extracted for processing, before being converted for export or refining.

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