Wednesday, 24 October 2018

Aramco Signals Chemical Ambitions Beyond $70 Billion Sabic Deal - Bloomberg

Aramco Signals Chemical Ambitions Beyond $70 Billion Sabic Deal - Bloomberg:

Saudi Aramco’s chief executive officer said he has bigger ambitions in petrochemicals beyond the planned $70 billion acquisition of a strategic stake in local company Sabic, touting plastics as a key hedge against an electric-car driven slowdown in global oil demand growth.

"We still have to do more," Amin Nasser, chief executive officer of state-owned Aramco, said in an interview in Riyadh.

Nasser’s comments are the latest signal Aramco is transforming from a giant oil producer into a vertically integrated energy company, mirroring a shift that major publicly-listed companies such as Exxon Mobil Corp. and Royal Dutch Shell Plc performed years ago. The shift comes as the International Energy Agency forecast that demand for petrochemicals -- the building blocks for plastics -- will become the largest force in global oil demand growth, out-pacing consumption from cars, planes and trucks.

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