Saudi Arabia may sell shares in its oil giant

Saudi Arabia is considering selling shares in its state-owned giant oil company, Saudi Aramco.

The company said in a statement Friday that it was studying various options “to allow broad public participation in its equity through listing in the capital markets.”

Aramco is the world’s largest oil producer: It claims to produce 1 in every 8 barrels of the world’s crude oil.

It also sits on a huge amount of oil. It says it has 261 billion barrels of proven reserves, roughly 15% of the world’s total.

Even a partial listing of Aramco would raise billions of dollars at a time when Saudi Arabia’s finances are getting crushed by cheap oil prices.

Crude has collapsed from well over $100 per barrel to just above $33 in the last 18 months.

Oil accounts for 75% of Saudi Arabia’s revenue, and the plunge in prices is hurting the kingdom’s budget big time.

The government spent way more than it collected in 2015 — leading to a budget deficit of nearly $100 billion. It announced a series of budget cuts, and even hiked the price of gasoline by 50%.

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