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Saudi Aramco's divestment programme-I: It will disrupt the global oil & gas business
Aug 16: Saudi Aramco's gigantic disinvestment programme is just around the corner.
8The country's young and aggressive Crown Prince Muhammad bin Salman believes the company should be valued at the massive US $2 trillion. This is five times the foreign reserves of a country like India.
8A five percent disinvestment is meant to fetch a whopping $100 billion
8But analysts want to peg the value at a much lower level on the assumption that global moves to decarbonize the energy system will have an adverse impact on Saudi Aramco.
8The reverse side of the coin is equally scary. Should attempts at decarbonization gain speed, Saudi Aramco is quite capable of quickening the rate of production from its massive low-cost reserves in a race to burn them up before it is too late.
8This however will massively disrupt the oil the market, pushing all other oil companies -- including the likes of Shell and BP -- to the brink.
8Even at this point, if the valuations turn out to be lower than expected, then it will have a spin-off impact on the valuation of reserves across the entire oil industry.
8This is one disinvestment programme that everyone must keep track of with some trepidation.
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