Monday 27 August 2018

Saudi Aramco loses its ‘in perpetuity’ exclusive oil rights | Financial Times

Saudi Aramco loses its ‘in perpetuity’ exclusive oil rights | Financial Times:

Saudi Arabia has cut the length of time that its state energy company has exclusive rights to the kingdom’s vast oil and gasfields, raising questions about Saudi Aramco’s long-term production and revealing a power struggle between the company and the government.

Saudi Aramco’s concession agreement with the state has limited the amount of time in which the group can explore and develop resources to 40 years — from a previous contract that gave it access in perpetuity. There will be an option to renew the contract.

The move, three people briefed on the matter said, came as part of the kingdom’s preparations for a stock market flotation of Saudi Aramco, which has been indefinitely delayed.

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