Riyadh: The chief executive of oil giant Saudi Aramco said on Tuesday that bankers had not expressed any concerns about a recent rise in Saudi funding costs ahead of the company’s potential acquisition of a stake in petrochemical firm Saudi Basic Industries Corp (Sabic).
The cost of insuring against a Saudi sovereign default over the next five years touched 100 basis points (bps) last week for the first time since June, in a sign of how deeply the killing of journalist Jamal Khashoggi has damaged sentiment toward the kingdom.
Asked whether bankers raised any concerns about the death of Khashoggi and worries over higher funding costs for the deal, Aramco CEO Amin Nasser said: “None whatsoever.”
“Aramco is well positioned financially,” Nasser said on the sidelines of an investment conference in Riyadh.
Aramco hired JP Morgan and Morgan Stanley to advise on a potential acquisition of a 70 per cent stake in Saudi Arabia’s Sabic, sources told Reuters in July.
Separately, Nasser also said it would take Aramco three months to reach maximum oil production capacity of 12 million barrels per day, if needed.