Saudi crown prince hints Aramco could be valued at more than $2 trillion

Courtney Goldsmith
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The oil terminal is one of the largest in the world (Source: Getty)

Saudi Aramco's crown prince has said the Saudi state oil firm could be valued at more than $2 trillion (£1.5 trillion) in its mega-float scheduled for 2018.

Mohammad bin Salman said the initial public offering (IPO) was on track for 2018 in an interview with Reuters. He said: “Aramco would prove itself on the ground on the day of the IPO. Actually when I talked about the valuation, I talk about $2 trillion, it could be more than $2 trillion.”

​Aramco has still not decided where the listing will take place, with London, New York and Tokyo among its options.

The head of the New York Stock Exchange (NYSE) today said the bourse had not given up hope that it could win the float. Thomas Farley, president of the group, said the NYSE was talking to Saudi authorities about it but did not elaborate.

Meanwhile, Aramco today bought a stake in a key oil terminal in the Netherlands, increasing the company's activities in Europe as markets including London compete to win the Saudi state oil firm's mega-float.

Aramco Overseas Company, a subsidiary of Aramco, has entered a deal to buy from commodities trading giant Gunvor Group's stake in the Maasvlakte Olie Terminal (MOT) in Rotterdam.

The sale is set to be completed by the end of October, but the agreed terms were not disclosed.

Aramco said the investment will add to its current participation in other facilities in the area, allowing for expanded offerings in the northwest Europe refining hub.

"This will complement Saudi Aramco’s export activities in Europe, strengthen the company’s supply chain and enhance its customer services in the region," Aramco said.

Gunvor acquired its stake in MOT, one of the largest oil terminals in the world, through its acquisition of Gunvor Petroleum Rotterdam in 2016. The divestment of MOT was part of Gunvor’s strategy to further develop its Rotterdam refining operations.

Read more: Saudi Aramco has asked its advisers to suspend investor relations work

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