OPEC+ ministers called off oil output talks on Monday after clashing last week when the United Arab Emirates rejected a proposed eight-month extension to output curbs, meaning no deal to boost production has been agreed, Reuters reported. Saudi energy minister Prince Abdulaziz bin Salman had called for "compromise and rationality" to secure a deal after two days of failed discussions last week. But four OPEC+ sources said there had been no progress.
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Saudi Arabian oil group Aramco is in talks with banks for a U.S. dollar-denominated bond issue, two sources said, seeking to raise money ahead of large commitments for its major shareholder, the Saudi government, Reuters reported. Aramco was widely expected to become a regular bond issuer after its debut $12 billion bond deal in 2019 was followed by an $8 billion, five-part transaction in November last year.
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Saudi Arabia is talking with unnamed foreign investors about selling stakes in Aramco, with options that include a 1% acquisition by a leading global energy company, according to the kingdom’s crown prince, the Wall Street Journal reported. Crown Prince Mohammed bin Salman, the kingdom’s de facto ruler and chairman of Saudi Arabian Oil Co., as Aramco is officially known, said that an announcement would come in the next year or two.
A debt restructuring proposal designed to prevent the collapse of construction giant Saudi Binladin Group may face more scrutiny from creditors, Bloomberg News reported. The lenders that want a bigger say in the process have held discussions with Rothschild & Co. and may decide to appoint the investment bank in the coming weeks. Talks are ongoing, and no final decisions have been made. Creditors may also choose to hire another adviser or none at all. While it’s not unusual for creditors to seek an independent counsel, they are acting almost a year after Binladin hired Houlihan Lokey Inc.
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Saudi Aramco has asked banks to extend by a year a $10 billion loan it raised last May, two sources familiar with the matter said, suggesting that rebounding crude prices are not pushing the oil giant to reduce debt for the time being, Reuters reported. The sources confirmed a report by Loan Pricing Corporation, a fixed-income news provider owned by Refinitiv. It is at the banks’ discretion whether to extend the loan, but lenders will likely agree in order to maintain a good relationship with Aramco in the hope of receiving future business, LPC said citing a banker.
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International companies that want to participate in the Saudi government’s investment opportunities “will have to make a choice” and establish regional headquarters in the kingdom as of 2024 or they will not win government contracts, the Saudi finance minister told Reuters yesterday.
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Saudi Arabia sold a two-part dollar bond as countries in the Gulf Arab region raise cash buffers to weather low oil prices and the coronavirus pandemic, Bloomberg News reported. The world’s largest crude exporter priced $5 billion in bonds on Tuesday. The $2.75 billion 12-year notes were priced at 130 basis points over 10-year U.S. Treasuries, compared with guidance of 140 basis points and initial price talk of 165. The $2.25 billion 40-year security were priced at 3.45%, versus guidance in the 3.55% area and initial price talk of 3.75%.
Saudi Arabia is preparing to return to global capital markets with a bond sale aimed at raising about $5 billion to help cover financing needs heightened by last year’s slide in oil prices, Bloomberg News reported. The kingdom is close to hiring banks for a sale earmarked for as early as this month, the people said, declining to be identified because the matter is private. No final decision on the timing has been made and the country may still put off the sale should market conditions deteriorate, they said. The Finance Ministry in Riyadh didn’t immediately respond to requests for comment.
Saudi Arabia pledged additional, voluntary oil output cuts of one million barrels per day (bpd) in February and March as part of a deal under which most OPEC+ producers will hold production steady in the face of new coronavirus lockdowns, Reuters reported. Saudi is going beyond its promised cuts as part of the OPEC+ group of producers to support both its own economy and the oil market, Energy Minister Prince Abdulaziz bin Salman said on Tuesday. Benchmark Brent oil prices rose on the news, trading up almost 5% above $53 per barrel at 2023 GMT.
Qatar and Saudi Arabia and its allies are expected to sign a deal on Tuesday designed to end a protracted feud that has split the Middle East and hampered U.S. efforts to isolate Iran, senior Trump administration officials said on Monday, the Wall Street Journal reported. Under the deal, the U.S. officials said, Saudi Arabia, the United Arab Emirates, Bahrain and Egypt are expected to officially end a blockade of Qatar they began in June 2017 when the countries accused Qatar’s leaders of supporting terrorism and aligning itself with Iran.