Log in
Register
Search
Search titles only
By:
Search titles only
By:
Log in
Register
Search
Search titles only
By:
Search titles only
By:
More options
Toggle width
Share this page
Share this page
Share
Facebook
Twitter
Reddit
Pinterest
Tumblr
WhatsApp
Email
Share
Link
Menu
Install the app
Install
Law Firm Directory
Apply to Paul, Weiss
Forums
Law Firm Events
Law Firm Deadlines
TCLA TV
Members
Leaderboards
Premium Database
Premium Chat
Commercial Awareness
Future Trainee Advice
Are you a future trainee?
We're hiring at
TCLA
. Apply by midnight on
31 March 2025
.
Apply Now
Forums
Aspiring Lawyers - Interviews & Vacation Schemes
Commercial Awareness Discussion
Commercial Awareness Update - August 2018
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="Coralin96" data-source="post: 1728" data-attributes="member: 15"><p>This will probably be my last commercial awareness update for August 2018!</p><p></p><p><strong>Saudi Aramco loses unlimited rights to access Saudi Arabia's oil reserves</strong></p><p><strong></strong></p><p><u>The Story</u></p><p></p><p>Saudi Arabia has reduced the length of time that its state-owned oil company, Saudi Aramco has guaranteed access to Saudi Arabia's vast oil and gas reserves.</p><p></p><p>Previously, the contract between the business and the government gave access to its reserves "in perpetuity". But now, Saudi Arabia has limited this to 40 years. And while Saudi Aramco has an option to renew access, it raises concerns about the relationship between the oil company and the government.</p><p></p><p><u>Impact on businesses and law firms</u></p><p></p><p>Saudi Aramco has already delayed its IPO, which was supposed to be the world's largest, as it looks to sell a 5% stake of its business to outside investors.</p><p></p><p>While Saudi Arabia has said it is committed to proceeding "when conditions are optimum", the change in contract terms suggests a struggle between the company and the government.</p><p></p><p>This does not bode well for Saudi Aramco who needs to instill confidence in investors before its IPO. The legal change to the contract shows the government reasserting its power over Saudi Aramco. Saudi Arabia had originally pushed for a 20 year agreement, but that would affect Saudi Aramco's IPO significantly, as it would have to reduce its stated reserves and future development - which would likely reduce its valuation.</p><p></p><p>Over the last few months, Saudi Aramco has been preparing for an IPO, having agreed a contract to change its financial reporting and complete an audit of its energy reserves. But it continues to face problems on its route to IPO, suggesting the company and the government may not be prepared for the consequences of an IPO.</p></blockquote><p></p>
[QUOTE="Coralin96, post: 1728, member: 15"] This will probably be my last commercial awareness update for August 2018! [B]Saudi Aramco loses unlimited rights to access Saudi Arabia's oil reserves [/B] [U]The Story[/U] [B][/B] Saudi Arabia has reduced the length of time that its state-owned oil company, Saudi Aramco has guaranteed access to Saudi Arabia's vast oil and gas reserves. Previously, the contract between the business and the government gave access to its reserves "in perpetuity". But now, Saudi Arabia has limited this to 40 years. And while Saudi Aramco has an option to renew access, it raises concerns about the relationship between the oil company and the government. [U]Impact on businesses and law firms[/U] [B][/B] Saudi Aramco has already delayed its IPO, which was supposed to be the world's largest, as it looks to sell a 5% stake of its business to outside investors. While Saudi Arabia has said it is committed to proceeding "when conditions are optimum", the change in contract terms suggests a struggle between the company and the government. This does not bode well for Saudi Aramco who needs to instill confidence in investors before its IPO. The legal change to the contract shows the government reasserting its power over Saudi Aramco. Saudi Arabia had originally pushed for a 20 year agreement, but that would affect Saudi Aramco's IPO significantly, as it would have to reduce its stated reserves and future development - which would likely reduce its valuation. Over the last few months, Saudi Aramco has been preparing for an IPO, having agreed a contract to change its financial reporting and complete an audit of its energy reserves. But it continues to face problems on its route to IPO, suggesting the company and the government may not be prepared for the consequences of an IPO. [/QUOTE]
Insert quotes…
Verification
Our company is called, "The Corporate ___ Academy". What is the missing word here?
Post reply
Forums
Aspiring Lawyers - Interviews & Vacation Schemes
Commercial Awareness Discussion
Commercial Awareness Update - August 2018
Top
Bottom
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
Accept
Learn more…
