Saudi Aramco's potential acquisition of a stake in Saudi petrochemicals maker SABIC would affect the time frame of its own planned initial public offering, Aramco's chief executive Amin Nasser said Friday.
He said that Aramco was in "very early-stage discussions" with the kingdom's Public Investment Fund (PIF) to acquire the stake in SABIC in a private transaction.
Usually, at such a stage there is no certainty that any such transaction will take place, Nasser told Al Arabiya television.
"If the deal is completed, with relevant regulations taken into account, it will definitely affect the timeframe for the partial IPO of Saudi Aramco," he was quoted as saying.
Nasser said that Aramco is ready to list but that the timing is up to the government to decide.
"As I said in previous interviews, when Saudi Aramco is ready, the decision of going ahead with the IPO is for the state to make," he said.
Part of Aramco’s long-term strategy is to convert 2-3 million barrels of its oil products into chemicals to diversify its sources of income, he told Al Arabiya.
The petrochemicals industry is growing at a rate of 3 percent, faster than the growth rate of the world economy, Nasser said.
He expected a much larger growth for the industry in the coming years.
