Saudi Arabia Is Said to Grant Aramco 40-Year Oil Concession - Bloomberg

Saudi Arabia Is Said to Grant Aramco 40-Year Oil Concession - Bloomberg:

Saudi Arabia has granted its state-owned oil company a 40-year concession to exploit the kingdom’s hydrocarbon reserves as part of Aramco’s preparation for a potential initial public offering, a person familiar with the matter said.

The pact replaces norms dating in some cases from 1933, when the kingdom first agreed to let companies drill for oil there, the person said, asking not to be named discussing internal matters.  Saudi Aramco declined to comment.

The legal change may mean little initially since the IPO’s been put on hold while Aramco closes a deal to buy a majority stake in a local petrochemical company worth as much as $70 billion. But Khalid al-Falih, the Saudi oil minister, said last week that the kingdom remained “committed to the IPO of Saudi Aramco at a time of its own choosing when conditions are optimum.”