In a move that would unquestionably strengthen the partnership between the world's two top oil producers, Russia's state pension fund is considering investing in Saudi Arabian oil giant Aramco, when it publicly lists its stock, according to Reuters.
On Tuesday, the head of Russia's Direct Investment Fund, Kirill Dmitriev, told Reuters that Moscow and Riyadh should be coordinating oil policies for many more years.
"We see great interest in the Aramco IPO from Russian pension funds as well as from our Chinese partners," said Dmitriev, who previously suggested a possibility of a joint oil output deal with OPEC.
He said he could not disclose the names of the funds or the amount they were prepared to invest.
Unnamed sources told Reuters last year that Chinese state oil companies were willing to become cornerstone investors in the Aramco IPO which could become the world's biggest, valuing the firm at up to $3 trillion and raising more than $100 billion.
Experts have previously said that its equity sale could be the largest in stock market history.
Since early 2016, Saudi leaders are hoping to raise $100 billion by selling just 5 percent of the company in an initial public offering (IPO). As part of Saudi's Vision 2030 reform plan, Crown Prince Mohammed bin Salman is expected to make the final decision as to which foreign stock market - if any - will be able to list shares.
The world's largest oil company will debut its shares on the Saudi domestic market called 'Tadawul' but it is also expected to list on at least one foreign exchange in the second half of 2018.
In November 2017, U.S. President Donald Trump publicly pleaded with Saudi Arabia to sell shares in its national oil company on the New York Stock Exchange (NYSE).
Here are 5 things you should know about the world's largest oil company:
1. Aramco holds more oil reserves than the entire North American continent
Saudi Aramco has an estimated 261 billion barrels of oil reserves.
Roughly 20 percent of the entire world's proven oil reserves are in Saudi Arabia. This is more than 10 times the oil reserves of ExxonMobil, the largest listed oil company in the world.
2. Aramco has an enormous workforce
Aramco says it employs around 65,000 workers in a country with a population of 28 million. But the company estimates that it currently creates work, either directly or indirectly, for about 200,000 people.
It's also hoping to grow that figure to about 500,000 jobs over the next decade as it looks to expand into related sectors such as chemicals.
3. Aramco operates the world’s largest oil fields
Aramco operates both the Ghawar and Safaniya oil fields.
The Ghawar oil field is the world’s largest onshore oil field and produces around 5 million barrels a day. The Safaniya oil field is the world’s largest offshore oil field and produces around 1.2 million barrels a day, enough to meet China’s daily demand alone.
4. Aramco has a market valuation of $2-3 trillion
Crown Prince Mohammed bin Salman confirmed that Aramco is currently valued at upwards of $2 trillion, four times higher than Apple, which is by far the most valued listed company in the world.
If Saudi Arabia sells a 5 percent stake in the Aramco IPO as planned, the offer could potentially fetch $100 billion or more at the company’s current valuation. This would make it the largest IPO in the world, 4 times larger than the Alibaba IPO that hit the markets in 2014.
5. Aramco says it produces 1 out of every 8 barrels of oil in the world
That's about 12% of global production, more than any other single producer. It pumps about 10.3 million barrels per day. That is more than twice its closest competitor Rosneft, Russia's state-owned producer.