Saudi King Salman previously sacked Minister of Energy Khalid al-Falih, appointing his son Prince Abdulaziz bin Salman to the position. This is the first time a member of the Saudi Royal Family has occupied this crucial office.
“There’s no change when it comes to production targets or maximum sustained capacity”, CEO Amin Nasser told reporters on the sidelines of the World Energy Congress, when asked how the split of Saudi Aramco from the Saudi Energy Ministry to prepare for an IPO would affect the implementation of the OPEC+ deal.
Riyadh plans to sell up to five percent of the state-run company’s shares within the next two years, supposedly creating the biggest IPO in history.
To avoid a conflict of interest, the Saudi government agreed on a reshuffle, separating the industry and mining function from the Energy Ministry (which previously monitored Saudi Aramco’s operations) and creating an independent Ministry of Industry and Mineral Resources.
AP Photo / Hasan Jamali, FileIn this Saturday, Jan. 23, 2016, file photo, an oil pump stands as the Saudi Hawks Aerobatic Team of the Royal Saudi Air Force performs during the Bahrain International Airshow in Sakhir, Bahrain
The decision is considered to be a part of the Kingdom’s Vision 2030 economic development plan, which aims to ease the county’s dependence on petroleum exports but has already faced several delays.
According to reports, to balance the Kingdom’s budget, Saudi Arabia needs oil prices of around $80 per barrel. Brent crude is currently trading at a little over $60 per barrel, and last month, Aramco posted a net income of around $47 billion – a 12 percent decline compared with the same period last year.