Saudi Aramco has said it plans to pay a base dividend of $75bn (£61bn) in 2020 as it gears up for its highly-anticipated public float.
The Saudi Arabian state oil giant has been courting potential investors for the initial public offering (IPO), from which it hopes to secure a $2 trillion valuation.
In a corporate overview posted to its website today, the company said it would have a “progressive growing dividend on sustainable basis at board discretion”.
The public listing is a linchpin of Crown Prince Mohammed bin Salman’s plan to overhaul the Saudi economy and reduce its reliance on oil.
The kingdom is said to be piling the pressure on wealthy Saudi families to take a stake in the state oil company to help beef up its valuation.
Saudi Aramco appears to be ploughing ahead with plans for its IPO despite doubts over the timeline following attacks on its facilities earlier this month.
The country has now restored much of its oil production after the drone attacks on its refineries, which wiped out half of Saudi oil production – or five per cent of global supply.
The document also mentioned the company’s “progressive royalty scheme”, with a marginal rate set at 15 per cent up to $70 per barrel, 45 per cent between $70 and $100, and 80 per cent if the price rises higher.
Main image credit: Getty