Aramco's public offering could be held up as Saudi Arabian officials deal with a wave of devastating drone attacks on the desert kingdom's largest oil complexes, according to a new report.
Saudi officials are weighing whether to postpone the two-part IPO, the first part of which is slated to kick off in November, until the country is able to restore oil production back to preattack levels, the Wall Street Journal reports. Output there had been halved according to some estimates.
The drone strikes on the Saudi oil facilities overnight knocked out 5% of the world's oil production, or 5.7 million barrels a day, and boosted oil prices.
Brent oil surged 19% to $71.95 a barrel after the attack, then fell off to $65.50 a barrel, or up 10%.
Aramco, officially Saudi Arabian Oil Co., still plans to push ahead with meetings with market analysts and bankers to gear up for the IPO, TWSJ reported.
Current plans involved Aramco selling part of itself to investors on an exchange inside the country before going fully public on international exchanges in November, the paper reported.
Saudi officials are waiting to fully assess the damage from the drone attacks before deciding whether to delay the Aramco public offering, the paper said.