THE SAUDI GOVERNMENT is set to earn an additional $1.9bn in royalties from state oil giant Saudi Aramco for every $1 increase in the price of crude above $70, according to Bank of America Merrill Lynch (BofAML) estimates.
The firm’s calculations are based on a royalty regime outlined by Bloomberg, which claimed to have obtained Aramco financial data ahead of a potential listing.
The news service said the data showed Aramco made nearly $34bn in net income in the first half of last year when Brent crude prices averaged $53 a barrel and was likely to make a significantly higher profit during the same period this year after the recent rally to more than $70.
It also detailed a royalty regime with the government set at 20 percent on oil liquids production up to $70 a barrel, 40 percent between $70 and $100 and 50 percent in excess of $100.
This story is from the May 2018 edition of Gulf Business.
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This story is from the May 2018 edition of Gulf Business.
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