Saudi oil company buys Siam gas producer for $7.5 billion

Saudi oil company buys Siam gas producer for $7.5 billion

Siam Gas Holdings, a subsidiary of Saudi Arabia’s Al Gomag gas company, has been acquired by Saudi oil giant Aramco for $10.4 billion, the company said.

The deal is the largest oil deal in the world by volume and is the first since 2014 when Saudi Aramco took a stake in a Chinese oil company.

Aramco has been working to build an oil field in the southern province of Fujian, which has a huge natural gas reserves and a major oil refinery.

Aramco, which produces more than 60 million barrels of crude per day, has about 1,000 million barrels (billion barrels) of gas in the pipeline and is currently pumping 1.5 million barrels per day (bpd).

It is also in the process of developing its liquefied natural gas (LNG) industry.

The company, which had been under Saudi pressure to close its plant, said it would not be able to operate in Fujian unless the state-owned China National Petroleum Corporation (CNPC) agreed to invest $5 billion in the region.

“As the world’s biggest producer of natural gas, Aramco is a leading player in the LNG industry, providing high-quality LNG to over 10 countries, and we look forward to working with CNPC in order to develop and deliver LNG into the market,” Aramco CEO Mohamed Al-Ghamdi said.

“Our joint development and the CNPC investment will create a global hub for LNG development.”

The deal was announced on Tuesday, with a formal announcement expected by mid-March.

It will increase Aramco’s stake in Siam by about $2 billion.

The deal also gives CNPC the right to acquire Siam’s remaining 50 percent of the company, while the other 50 percent will be controlled by the Siam government.


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