To the lawyer for. The horrendous over the 1st notice to know the. Whole long. Term a lot more of this thing more. Devoted to terrorism well the of the takesh president said he would oppose a key nato defense plan the Baltic States if Member States refused to recognize kurdish fighters in syria as terrorists. They said needs to act in a proactive manner against 3 its pros by the terrorist organizations its inevitable that nato is in need of readjusting itself against todays terrorist threats we expect our allies to display strong cooperation with us against the 3 pts we are facing and President Trump has also warned the European Union to shape up trade trump says the u. S. Is being treated unfairly and things will get very tough for the e. U. If it doesnt change donald trump has threatened tariffs on french products and responds to a new french tax on Technology Giants trump believes u. S. Fans like google being targeted Iranian State television has acknowledged for the fast time that Security Forces shot and killed people it describes as rioters during antigovernment protests the demonstrations began after the government increased fuel prices. Police in democratic republic of congo say 5 people were killed during protests in beni on monday demonstrators are upset about what they say is a lack of u. N. Protection from armed rebel groups catherine so is in goma the largest city in east india and she explains how the government is responding to the unrest. Have been talking to. Our producer there who say that its calm this morning. All day yesterday of you know running battles between Security Forces and protesters the military effectively taking over control of the streets in that press conference we heard yesterday from the Army Spokesperson saying that now the protests have dangerous because theyve been in the process have been infiltrated by these armed elements who did not mention from which group this people are coming from but i did speak to the governor of north who says that they believe its my my own mexicos moderate hit historic levels with 127 deaths reported on sunday thats the highest number in a single day since records began in 1907 many are now questioning the new president s strategy to tackle drug cartels hong kong leader kerry says new u. S. Law supporting protesters are an unnecessary interference the law was signed last week could limit trade with hong kong if the chinese territories autonomy is jeopardized months of antigovernment protests have plunged hong kong into a recession for the 1st time in decades for the malaysian Prime Minister najib razak has been on the witness stand for the 1st time to defend himself against corruption allegations the High Court Trial has to do with a multibillion dollar scandal at malaysias state fund known as one m d be accused of illegally receiving about 10000000. 00 when he was in office hes pleaded not guilty to all the charges which include Money Laundering and abuse of power. A powerful typhoon has struck the philippines main island of luzon forcing almost a quarter of a 1000000 people from their homes its the 20th typhoon to hit the philippines just this year well those are the headlines do join me for more news here after saudi aramco the company and the state stay with us. It seemed like a great idea the Worlds LargestOil Producing company pumping millions of barrels a day to become the Worlds Largest ever traded stock on porsche can have just met the highway see it for yeah were not looking. To be asleep and over ambitious prince eager to make his mark as a reformer wanted to partially trade saudi aramco for a fellow you ation of 2 trillion dollars but the venture failed to get off the ground and the princes vision 2030 now seems blurry. Saudi aramco is almost like the basis of politics in saudi arabia they are always intrinsically tied everybody in saudi arabia in one way or another is a beneficiary saudi aramco. Arabia needs a strong rand paul and vice versa as well the history of saudi aramco is the history of saudi arabia transforming itself from an isolated Tribal Society into a global presence. Get it right you reap a windfall get it wrong and the risk is huge the whole saudi economy whats at stake. All the balance the hollow that you face the greens and the living. And the way they run the risk of being toppled royal family could be running for the whole. Issue is really you know is an i. P. O. Best for the company and when you look at graeme coke the company you have to realize that unlike other companies. Operated for years without ever imagining and. So theyve never had to make decisions. For somebody maybe going to be publicly listed or wed like to publish this heres how we need to have our finances a great heres the kind of growth that we need to be showing in our Financial Statements to make investors see our value. Analysts have never followed around because it was never seen as a potential investment and now thats changed around for many years to have a strategy of form tar growth and long term revenue because their idea was that they were making money for the benefit of the saudi state if theyre going to i. P. O. Then theyve got a sudden they think about their quarterly reports and that make change how they invest and that may not be the best strategy for saudi arabia. The kingdom holds about 16 percent of the worlds oil reserves its the largest exporter of petroleum among opec countries and that means its economy relies heavily on oil 90 percent of exports 87 percent of budget revenues nearly half of g. D. P. Comes from oil. Towering over these numbers is the company which digs out refined and exports that oil it pumps one out of every 8 barrels of oil in the world and its the only company which can produce a barrel of oil for less than 10. 00. Says it employs 65000 people but creates direct and indirect work for hundreds of thousands in the came so if its doing so well why let it go. I think there was a strong case for the i. P. O. And there still is for the selling off the stake of saudi aramco and there are lots of reasons for it now its been talking about diversifying its economy for years i think the specter of. Climate action has finally made the saudis get serious about it and really the only way to diversify is through aramco i mean aramco is the source of revenues that saudi state needs to build other economic sectors even and the reason is big and i took on these you know in the middle east but still this deeply deeply starts that some day a sample of the oil will be depleted pretty exhausted so they have to thing that you know you have to be fired here and have to get the economy was kind of ironic youre going to be relying on oil to diversify away from fossil fuels so if you think about saudi risk its 100 percent owner of this company that supplies almost 100 percent of its government budget ok if they if it sees a risk to to that Company Going to far off risk its do you need to start diversifying that risk and passing some of that along to Foreign Investors is one way of doing it. Concerns about radical changes in strategy put a spanner in the works for saudi aramco is public listed for the 1st time in its history the company would have to disclose everything i think when you consider the size and scope and the opportunity theres a lot of emotion and also a lot of momentum and sometimes a momentum and emotion get rolling you may lose sight of the reality of what you had to do when it came to. Affectively being now an open Public Company before my. Vision 2030 was unveiled as a master plan for Socio Economic reforms as a result women can drive cinemas have begun to pop up. Mohamed bin so moms aim was to reorient the saudi economy away from oil and reassure investors that saudi arabia is stable and progressive. A lot has changed since the princes International Public relations drive the efforts to convince businessmen to feel comfortable working in the kingdom also faced a blow when top saudi business kingpins were put under arrest in an opaque Anti Corruption drug and as a cascading effect there has been flight of capital reduced Foreign Investment increased saudi borrowing and a halt on saudi aramco its i. P. O. The increase in internal repression inside the kingdom you know locking up of folks inside the the ritz carlton a lot of those were heads of Family Businesses or Large Companies or big conglomerates you know that gives for investors pause. The murder of one journalist has washed away the veneer of change and quashed Investor Confidence you know its tough going for democracy im asking for people to be allowed to speak for that we need to make. The interest of a stakeholder never get priority over the kingdom the privatization process would mean saudi oil reserves will be up for scrutiny and to ramp those finances will be in the public eye. You go from mining a business where you have endless resources and no oversight to one day having to register your company with the exchange and have to disclose every single number. The companys had over the last 5 to 10 years every piece of cap ex every decision thats been made every partnership every single thing you john is now in the public purview why the move. On. I think begin by. Because. If youre a private company thats run so well its painful because you have answer a lot of question but not nearly as painful as after you take peoples money. Those saudi economists who dared to raise concerns about the princes ambitious 2030 plans are in jail now you. Need to know that youre not a candidate couldnt know that you had. A day before the murder prominent economist is samo samo was indicted on terrorism related charges his crime was providing analysis some of which explained that a high valuation of aramco could mean that the kingdom will not get any oil revenue for decades because all of it will go into a ramp oh controlled by shareholders. In the beginning stages you have to take anyones money because it is just disclosing to the exchanges heres how we run our business heres why you should be comfortable listing us you then go out to raise capital. And once youre taking someone elses money they own those shares and youre a company for the people by the people you know not a company for the Management Management or the or the king. And the transitions massive. That changeover from state control to a public list which began in 2017 is now shelved for years to come here rahm coexecutors have also left or been moved. So that process for a company like this probably a year and a half so like a tech start up for you have a slide presentation and some hope you have a business that changes Global Markets for decades and decades so its a process that will be expansive. It will be intrusive. And it will be transformative. Saudi aramco places the kingdoms reserves at 261000000000 barrels of oil but that magic number with no real 3rd party audit has remained more or less constant for nearly 30 years since the 1980 s. There have been rising production changes in technology and no announcements of Major Oil Discoveries in the kingdom other oil giants such as shell and exxon have revised down their reserves during this period. If on average saudi production was at 9000000 barrels a day in the last 30 years a ram co has pumped out nearly 100000000000 barrels without a dent in its 261000000000 reserves and the jurys out on how much they actually have and what its worth. Looking at their reserves figures you know makes if you look too closely at it you start to wonder how it can stay roughly constant from year to year when theyre theyre producing an export and so much oil every year this closure of the reserves its a top secret in saudi arabia and i think thats a significant concern on the part of aramco executives they treat their reserves with kid gloves bare duty is to get the most out of these reserves in the best way possible the reserve confidence will only be consistent with 3rd parties verifying the information thats got to be done through regulatory fashion that everyones comfortable it cant just be something a company says and and hopes is the case youve got to verify. Whatever other qualities god may have given the saudis he gave them a lot of wealth in the ground and thats not going to go away so we want might quibble over the over the reserves. But you know the saudis have the ability to do fracking. They havent even started basically. But would the possibility of higher reserves be enough for investors to finance a room cose i. P. O. Probably the biggest downside is the transparency that would have resulted around saudi reserves saudi oil reserves that doesnt change very much from year to year and really hasnt changed much over the past couple of decades it doesnt give much insight beyond the single number you know around 260000000000 barrels if saudi aramco would have listed shares in the New York Stock Exchange of the london Stock Exchange the regulators would force saudi arabia to come clean on all of its reserves you know how much of that is proven probable or otherwise i think thats a tough sell within the kingdom within saudi aramco and within the ministry and all the way up to the head of state i dont think so do you arabia is. Not trustworthy when it comes to their reserves i think their reserves are there but the capacity is another question the saudi aramco has never produced 12 and a half 1000000 barrels a day and has never come within about a 1000000 barrels a day of that aramco says that it can reach that level of capacity after a period of about 6 months of additional investment right so it cant just twist a few valves and crank up an extra 2000000 barrels a day i can remember on one occasion. Sitting in the office of the. Minister petroleum we did not know that i understood arabic. When one of his hades came rushing in. And said weve got weve proved the reserves in this particular new field theyve found and he said well how much is it made the 3000000000. 00 barrels and he said oh its too small cap it well thats twice the alaska reserve. If you had full access to to ramp those reserves figures and you know other inside details about its Revenue Streams and whatnot you know anybody with a smartphone could could 2nd guessed saudi minister you know right now when the when the oil minister goes to vienna to speak in public at a you know tech meeting and you can see him surrounded by hoards of reporters each shoving their voice recorder in his face to catch a cold you know snippet of you know what he says about you know saudi plans saudi reserves saudi Oil Production. You know sort of saudi Market Strategy the world would be is quite is dependent on the oil minister for information you know sort of on the walk the. You know the secrets of whatever and co was going to do also you know you put those there with that information out there its out there for everyone. We should just be dynamic and responsive the reserves matter because the reserves and output give saudi arabia the regional and International Clout as the largest producer in the Oil Producing club of nations known as opec vacation travel watching billions and billions and billions of dollars of industry get moved by opec. And opec being a saudi driven organization they have to be meticulous the company is so good at what it does that that also brings its leaders a certain amount of political clout when it comes to opec and when it comes to other dealings with other countries a practice about the capo and. The early ones boost their belies the oil price at the some extent in that it you need therefore bag i think its still a bought them through how then we can bring the best applies at a price but its the. Not the prize that benefits are going to produce or at the prize that also benefit the producer and consumer. The studio for the were going to come aboard in a situation with everything focused on fundamentals focused on addressing the Global Markets needs quarter reliable supply is literally them saudi arabia is the keystone in opec it is the big dog its the ringleader if you will within opec opec members maintain a little bit here and there no one has more than 1000000000 Barrels Per Day of Spare Oil Production Capacity that that i know made chains that that kind of level of spare capacity. At you know as as a policy that saudi arabia saudi aramco typically maintain you know a w2w barrels 2000000 barrels a day of Oil Production capacity that they dont use ok so no profit Oriented Firm would ever do this you wouldnt invest all the billions in developing oil fields and pipelines and Storage Facilities and production infrastructure and then just leave it dormant saudi aramco has done it at the behest of the saudi state. And you know its the key aspect in the saudi u. S. Partnership the ramp those ability to bring more Oil Production online in its willingness to cut back at times and markets are oversupplied its going the crux of the the u. S. And Saudi Strategic partnership. Saudi arabia if we broke with them i think your oil prices would go through the roof ive kept them down theyve helped me keep them down right now we have Lower Oil Prices are relatively id like to see it go down even lower.