Wall Street

Saudi Arabia buys $ 1 billion in European oil companies

Summary

PIF’s billion-dollar investments in Saudi Arabia Description video: Saudi Arabia’s sovereign wealth arm, the Public Investment Fund (PIF), is investing billions of riyals to ensure future growth and security for the kingdom’s economy. This video outlines PIF’s recent investments related […]

PIF’s billion-dollar investments in Saudi Arabia

Description video:
Saudi Arabia’s sovereign wealth arm, the Public Investment Fund (PIF), is investing billions of riyals to ensure future growth and security for the kingdom’s economy. This video outlines PIF’s recent investments related to construction, development, and post-construction services.\n\n* Read about PIF’s companies dedicated to Saudi Arabia’s Holy Sites: http://bit.ly/2fMuPu7\n\n* Check out details about PIF’s new waste management unit: http://bit.ly/2kUesgS\n\n* Details of PIF’s $507m energy services company, named Super Esco, revealed: http://bit.ly/2hyMwLs\n\n* Saudi’s plans to raise home ownership outlined: http://bit.ly/2yzg70Z\n\n* PIF’s strategy to attract entertainment investments available here: http://bit.ly/2hrpZ2d\n\n* Construction on Saudi’s $5bn New Jeddah Downtown to begin in 2019: http://bit.ly/2yhwGid\n\n* Read about the Red Sea Project here: http://bit.ly/2hiQfPl\n\n* Details of $500bn mega-city Neom revealed: http://bit.ly/2zCSZLY\n\n\n\n\n© ITP MEDIA GROUP\n\nProducer contact: neha.bhatia[@]itp[.]com OR twitter.com/cw_neha\n\nSupporting footage courtesy: \n\nPublic Investment Fund (http://bit.ly/2z8eBAO)\nDiscover Neom (http://bit.ly/2h5Ncea)

Saudi Arabia buys $ 1 billion in European oil companies

Saudi Arabia’s public investment fund, the Public Investment Fund (PIF), has bought stakes in four of Europe’s largest oil companies worth about $ 1 billion, according to the Wall Street Journal, citing sources familiar with the matter..

The four companies are Norway’s Equinor ASA, Anglo-Dutch energy company Royal Dutch Shell, France’s Total SA and Italy’s Eni SPA..

The fund bought about $ 200 million in Equinor during a spike in oil prices last week, according to the WSJ. The sizes of the packages purchased from three other companies are unknown, but their combined value is about $ 1 billion..

The acquisition of stakes comes during a downturn in the global oil and gas industry as energy demand plummets during the coronavirus outbreak.

The representative of Saudi Arabia, to whom cites WSJ, stated that similar transactions may take place in the future.

«PIF becomes active in the market again … I wouldn’t be surprised if we see similar deals again», – the newspaper quotes the official.

PIF is the instrument of the Crown Prince of Saudi Arabia Muhammad bin Salman to stimulate Saudi investment at home and abroad as it seeks to diversify the oil-producing economy.

The fund manages over $ 300 billion in assets and has stakes in Uber and electric vehicle maker Lucid Motors.

The fund has invested $ 45 billion in Vision Fund, owned by SoftBank, its total size is $ 100 billion. On Monday, the company disclosed an 8.2% stake in the cruise operator affected by the coronavirus, Carnival Corp..

Saudi Arabia buys $ 1 billion in European oil companies

None of the companies were immediately available for WSJ comment.