Economy

Saudi Arabia vows to slash oil exports after price slide

Saudi Arabia vows to slash oil exports after price slide

Allowing an independent company to assess its reserves represents a major shift for Saudi Arabia, which has for decades closely guarded data about its oil and gas industry.

Khalid al-Falih, energy minister for the Saudis, is credited for bolstering traders, by stating on Wednesday that his kingdom will meet its goal of reducing output to 10.2 million barrels per day (bpd) this month, down about 900,000 bpd from the country's record November output; the Saudis will also export 7.2 million bpd this month and 7.1 million bpd in February.

Crude oil prices appeared headed lower Thursday after a US report showed a lower-than-expected inventory draw, and also as trade talks earlier this week between China and the United States did not show a clear direction. The kingdom on Wednesday took a first step in that direction by releasing the first audit of Aramco's oil and gas reserves since 1980.

Jaguar Land Rover to cut 4,500 jobs under cost-saving plans
As well as its United Kingdom manufacturing centres, JLR also has facilities in Brazil, Austria, Slovakia, India and China. Vehicle giant Jaguar Land Rover will announce up to 5,000 job cuts later on Thursday, according to reports.

The plans for the bond, first reported by Bloomberg News a year ago, came as the Saudi Arabian government reactivates a plan to sell shares in the company.

It answers a key question for potential investors in the planned share sale of Saudi Aramco, the state-owned company that manages the Kingdom's vast oil wealth. The closest it has come to issuing debt was when it raised 11.25 billion riyals (US$3 billion) in a debut, local-currency, Islamic-bond sale.

The Saudi Arabia-based oil and gas giants, Saudi Aramco, is planning to delve into the debt market during the second quarter in order to fund the purchase of petrochemical company, Sabic, in what is set to be its first ever global bond, according to Bloomberg. "It's not going to be anywhere near the number that's been rumoured", he said. In turn, the Public Investment Fund would obtain the money it had initially hoped to raise from the Aramco IPO. At that time, the company had about US$20 billion of borrowings, offset by US$19 billion of cash and equivalents. The prospectus for the 2017 offering didn't include any financial information, according to a copy of the document reviewed by Bloomberg. The nation's actual oil and gas holdings are bigger than the announced numbers, which are for proven reserves and don't include those that are probable, Al-Falih told a news conference in Riyadh.