Shareek Program Will Allow Aramco to Improve Profitability of Energy Projects, Says CEO

Shareek Program Will Allow Aramco to Improve Profitability of Energy Projects, Says CEO

Saudi Aramco will set strict business criteria for ventures it backs under a new private partnership initiative to help diversify the Kingdom's oil-reliant economy, the CEO said.

His comments in an interview on Wednesday came a day after Saudi Crown Prince Mohammed bin Salman announced the new Shareek (Partner) initiative, in which the state-controlled oil giant and petrochemical firm SABIC would lead private sector investments worth 5 trillion riyals ($1.3 trillion) by 2030.

The new program is part of efforts to mobilize private investment in the world's biggest oil exporter, helping the Kingdom diversify away from crude sales that still generate more than half the state's income.

"You can look at Shareek as a catalyst in making Saudi Arabia even more compelling as an investment destination for both local and foreign investors,“ Aramco Chief Executive Amin Nasser told Reuters.

Nasser said private companies would seek incentives from the government - whether infrastructure, fiscal or regulatory support - and Aramco would determine whether to back a project as a partner.

"This is a voluntary program. It's on the private sector to bring these projects, to ask for incentives,“ he said.

He promised Aramco's shareholders, who include a small minority of private investors since the company began trading