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China is negotiating with Saudi Arabia to buy 2% of Aramco shares, worth $100 billion!

The SC

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Bloomberg Agency:

The Chinese sovereign fund is negotiating again to buy (2)% of Aramco's total shares
Instead of 1%, with an estimated value of about (100) billion dollars in cash..
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With Aramco allowed to open refineries and petrochemical plants in China
Storing oil in China and selling it to Asian countries..
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And Saudi Arabia is negotiating terms that preserve its sovereignty over its wealth..

https___d1e00ek4ebabms.cloudfront.net_production_4d9efe0f-4db5-487e-bb6b-1476cbb589c5.jpg


 

MH.Yang

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Just buy oil.
We should not be too deeply involved in the situation in the Middle East. Otherwise we may be forced to choose sides one day.
 

Indos

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Oil price has exceeded 80 $ per barrel and some credible financial institution expect the price to reach 90 $ in the near future. As long as OPEC is able to control the supply side, the oil price will likely to remain high even until 2030.

Then it should be used by Saudi to reform their economy and become like Singapore in term of industry. Singapore only has 5 million people but can attract many FDI and invest highly in R&D.

This is a window of opportunity that Saudi should use and I hope they stop those high defense spending that is largely for imported defense equipment.

 

DJ_Viper

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Bloomberg Agency:

The Chinese sovereign fund is negotiating again to buy (2)% of Aramco's total shares
Instead of 1%, with an estimated value of about (100) billion dollars in cash..
-
With Aramco allowed to open refineries and petrochemical plants in China
Storing oil in China and selling it to Asian countries..
-
And Saudi Arabia is negotiating terms that preserve its sovereignty over its wealth..
Oh boy, the Chinese do come to take over weak economies. The KSA economy has been out in the weeds. So for $ 100 billion, the Chinese will store oil in CHINA when that belongs to KSA. 15 years from now, if there is a conflict what would China do? "keep that oil"?
 

DrJekyll

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$100 Bn for 2% stake? Does that mean Saudi Aramco is worth $5 Trillion? It is not. Closer to 2 trillion.
Also their price is at a historic high so the Chinese are buying at peak price. 2% stake means nothing in terms of bargaining power so there is no 'takeover' of weak economy.

I am a bit surprised that with China's own progress in alternative energy sector, they are willing to shell out so much for a 2% stake in a fossil fuel company.
 

Bouncer

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Otherwise we may be forced to choose sides one day.
That's the entry ticket price for being a super power.

Whether China likes it or not, the way American foreign policy is moving, everybody will have to choose sides soon. America is moving forward with clearly defined platforms like Quad, five eyes etc. While China is trying to drag the first decade of 2000s as much as possible by playing nice and mature. World is surely becoming bi-polar again like the good old days of cold war.
 

Indos

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$100 Bn for 2% stake? Does that mean Saudi Aramco is worth $5 Trillion? It is not. Closer to 2 trillion.
Also their price is at a historic high so the Chinese are buying at peak price. 2% stake means nothing in terms of bargaining power so there is no 'takeover' of weak economy.

I am a bit surprised that with China's own progress in alternative energy sector, they are willing to shell out so much for a 2% stake in a fossil fuel company.
You can cry in the corner .........................:bunny:

Nice they start selling where oil price is now nearing that 2005-2010 period
 

DrJekyll

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You can cry in the corner .........................:bunny:

Nice they start selling where oil price is now nearing that 2005-2010 period
I have no need for crying or laughing on this subject. My post was an academic question and perhaps someone more knowledgeable on the subject will provide a proper answer.
 

Indos

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What I can say some will likely be invested to Indonesia sovereign wealth fund as UAE invested around 10 billion USD. This is both for investment and to buy influence

 

The SC

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$100 Bn for 2% stake? Does that mean Saudi Aramco is worth $5 Trillion? It is not. Closer to 2 trillion.
Also their price is at a historic high so the Chinese are buying at peak price. 2% stake means nothing in terms of bargaining power so there is no 'takeover' of weak economy.

I am a bit surprised that with China's own progress in alternative energy sector, they are willing to shell out so much for a 2% stake in a fossil fuel company.
https://defence.pk/pdf/threads/oil-...-of-global-energy-mix-until-2045-opec.724587/
 

MH.Yang

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That's the entry ticket price for being a super power.

Whether China likes it or not, the way American foreign policy is moving, everybody will have to choose sides soon. America is moving forward with clearly defined platforms like Quad, five eyes etc. While China is trying to drag the first decade of 2000s as much as possible by playing nice and mature. World is surely becoming bi-polar again like the good old days of cold war.
I mean that Chinese want not choose between Saudi Arabia&Iran, we have always supported Palestine.
What is the reason for the Chinese people to participate in this inexplicable sectarian war? We just want to buy some oil.
The Middle East is the Arab Middle East, which has nothing to do with the Chinese.
 

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