Saudi Arabian Oil Company and Malaysia’s state-owned oil firm are close to raising an $8 billion loan to partly finance the construction of a planned refinery and a petrochemical complex in the Southeast Asian nation, people familiar with the matter said.
The Middle Eastern oil giant, known as Aramco, and Petroliam Nasional Bhd. could sign the loan agreement as early as next month, said the people, who asked not to be identified because the information is private, Bloomberg reported. BNP Paribas SA, HSBC Holdings Plc and Bank of Tokyo-Mitsubishi UFJ Ltd. are among lenders that have agreed to provide financing, the people said. The complex is part of a $27 billion project known as Refinery and Petrochemicals Integrated Development, or RAPID, in Malaysia’s southern state of Johor that’s due to come on stream in 2019. Aramco agreed to invest $7 billion for half of the oil refinery and petrochemical plant last February, as it seeks to defend its status as the world’s biggest crude exporter in Asia.
Indecision over where to list the shares of the world's largest energy company is reportedly playing a major role in holding up what is expected to be the biggest-ever initial public offering.
More than 200 institutional investors with $26 trillion in assets under management said on Tuesday they would step up pressure on the world’s biggest corporate greenhouse gas emitters to combat climate change.
Oil prices rose on Friday, nearing their highest levels in more than two years, with buyers attracted by expectations of an extension to a global pact to cut output that has reduced oversupply.
Saudi Arabia and Russia plan to set up a $1 billion fund to invest in energy projects, Russian Energy Minister Alexander Novak said in an interview broadcast by Al Arabiya TV on Monday.
Crude oil production from the giant South Azadegan field near the Iraqi border has increased by 22,000 barrels per day.
The impending initial public offering of shares in Saudi Aramco, the world’s biggest oil producer by volume, will be a bellwether for investors’ belief in humanity’s readiness to curb the carbon emissions set to disrupt centuries of stable climate.