Wall Street

Saudi Arabia buys $ 1 billion in European oil companies

Summary

Daily Business Wrap – Demand for Aramco bond upwards of $30 billion Description video: Appetite for Saudi Aramco’s first international bond, which will be issued this week, is more than $30 billion (Dh110.1 billion), according to Saudi Energy Minister Khalid […]

Daily Business Wrap – Demand for Aramco bond upwards of $30 billion

Description video:
Appetite for Saudi Aramco’s first international bond, which will be issued this week, is more than $30 billion (Dh110.1 billion), according to Saudi Energy Minister Khalid Al Falih, speaking on Monday.

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..

Saudi Arabia buys $ 1 billion in European oil companies

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..

None of the companies were immediately available for WSJ comment.