Saudi Aramco to invest up to $120m in Europe
Saudi Arabian Oil Company (Aramco), the world’s largest crude exporter, is planning to invest up to US$120m a year as part of a deal with an Oslo-based investment management firm, it was reported.
The state-owned firm, which last month set up a venture capital subsidiary called Saudi Aramco Energy Ventures (SAEV), has signed an agreement with Norwegian company Energy Capital Management (ECM).
ECM previously advised Norway’s Statoil on its investments and will help Saudi Aramco gain a bigger foothold in Europe.
“We are delighted to enter into this agreement with ECM. It brings a highly respected team with established networks in the Europe oil & gas venture capital sector, a presence in key innovation centers in Europe, and a strong track record in oil & gas technology investing,” said Ibrahim Al-Buainain, CEO of SAEV.
The world's largest oil producer, which has been pumping close to a billion dollars worth of crude a day at times this year, has not given any detail of the funds available to SAEV.
"Typically we reserve around 50 percent of investment in any one company for follow-on financing," SAEV said on its website last month. "We seek minority equity ownership positions and in most cases seek board seats or board observer rights."