Major Chinese Investors in Talks to Take Aramco Stake

Major Chinese Investors in Talks to Take Aramco Stake

General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah/File Photo

Major Chinese investors are in talks to buy a stake in Saudi Aramco, several sources told Reuters on Wednesday, as Saudi Arabia's state oil firm prepares to sell another slice of its business to international investors.

Saudi Crown Prince Mohammed bin Salman, Deputy Prime Minister and Minister of Defense, announced on Tuesday that Saudi Arabia was looking to sell one percent of Aramco to "one of the leading energy companies in the world.“

He also said it could sell additional Aramco shares to other international investors.

"There are talks with other companies for different stakes, and part of Aramco's shares could be transferred to the (Saudi) Public Investment Fund and a part listed on the Saudi bourse,“ he said in an interview aired by Saudi TV marking the fifth anniversary of Vision 2030.

A stake of 1 percent would equate to around $19 billion based on Aramco's current market capitalization.

Sovereign wealth fund China Investment Corporation (CIC) (CIC.UL) was among those that could invest, two sources told Reuters.

Aramco was talking to CIC, as well as Chinese national oil companies, said one of the sources close