Independent audit confirms rise in Saudi crude oil reserves

An independent audit commissioned by Saudi Arabia has confirmed a slight rise in the kingdom’s proven crude oil reserves.

Conducted by consultants DeGolyer and MacNaughton (D&M), the audit revealed that the kingdom’s total proven crude oil reserves as of the end of 2017 stood at 268.5 billion barrels of oil. This is marginally more than the previously estimated 266.3 billion barrels.

The kingdom’s gas reserves have also been revised to 325.1 trillion standard cubic feet of gas from the previously reported 307.9 trillion.

The report is seen as a major development in the country’s efforts to launch an initial public offering for state-owned oil company Saudi Aramco as part of an economic overhaul.

The independent assessment may also bring in increased transparency regarding the nation’s oil and gas wealth and address longstanding scepticism over the size of its reserves.

Saudi Arabia energy minister Khalid Al Falih told reporters: “This certification underscores why every barrel we produce is the most profitable in the world, and why we believe Saudi Aramco is the world’s most valuable company and indeed the world’s most important.

“The results point out that the kingdom’s reserves of oil and gas are bigger than what we have been announcing.”

The planned IPO for Saudi Aramco has been delayed. Falih stated that the IPO will take place in 2021.

The delay comes amid the company’s planned purchase of chemical maker Saudi Basic Industries Corp. (SABIC). Through the public listing of Aramco shares, the kingdom hopes to attract a $2tn valuation for the company.

Saudi Arabia is the de facto leader of producer club the Organization of the Petroleum Exporting Countries (OPEC) and the world’s biggest oil exporter.