That Saudi Arabian Oil Co., better known as Saudi Aramco, is considering selling shares to the public has generated a lot of chatter about what the company might be worth. By one measure, proved reserves, Saudi Aramco may be worth as much as $10 trillion when oil reaches $40 a barrel again.
In a statement Friday, the company said:
Saudi Aramco confirms that it has been studying various options to allow broad public participation in its equity through the listing in the capital markets of an appropriate percentage of the Company’s shares and/or the listing of a bundle of its downstream subsidiaries.
Saudi Aramco claims 261 billion barrels of proved reserves, nearly 20 times the proved reserves of Exxon Mobil Corp. (NYSE: XOM), which reported about 14 billion barrels of oil at the end of 2014 and has the largest proved reserves of any publicly traded company in the world. Even at $30 a barrel, Saudi Aramco’s reserves would be valued at more than $8 trillion. And 5% of that is still $400 billion. Exxon’s market cap today is about $315 billion.
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