• Saudi Aramco: Those bloody pesky lawyers!


    HRH Crown Prince Mohammed bin Salman could be forgiven for feeling more than a little irritated with the US legal system where the world’s oil companies are facing the threat of being sued for trillions – not billions – by US attorneys working on a “No Win: No Fee” basis for various climate change groups for supposedly causing global warming.

    It appears that the efforts of these pains betwixt the Royal derrière are threatening to derail the privatisation of Saudi Armaco.
    GOTO: https://www.reuters.com/article/us-saudi-aramco-ipo/saudi-aramco-international-listing-looks-increasingly-difficult-sources-idUSKCN1GP0OK
    British Gazette comment:
    The Reuters report suggests that if (and we think it will) the IPO proceeds the listing will be confined to the Tadawul exchange in Riyadh. If this is the case the IPO will either fail in it’s objectives. This is because of the size, not only of Saudi Armaco (which has a potential market capitalisation of US $ 2 trillion) but also the Tadawul (which is a very small exchange).
    GOTO: https://en.wikipedia.org/wiki/Tadawul
    GOTO: https://www.tadawul.com.sa/wps/portal/tadawul/home/

    When the IPO was first suggested the professional market markers will have suggested that the company be listed on three exchanges:
    1. The Tadawul
    2. The NYSE
    3. The London SE
    This was because of the huge size of the company. IF it is the plan of the Saudis to progressively sell the “family silver” as Lord Stockton would have put it, over time then a large market is essential.

    This would tend to argue for a dual listing – Riyadh and London. In fact, were the Saudis over a period proceed not only to list Saudi Aramco in London but to reincorporate in London (as suggested in our earlier article: http://www.british-gazette.co.uk/2018/03/09/brexit-madame-mayhem-and-five-card-stud-poker/) as well and to start selling their oil in Sterling and not the Dollar then this would afford them some protection against the Greenies.

    This is because the British economy would become wedded to the health of Saudi Armaco and it would be in HMG’s interest to make sure that any Greenie efforts are frustrated.

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