Aramco oil reserves higher than reported, reveals audit

An audit of Saudi Aramco's oil reserves - an essential part of the preparatory work for its planned initial public offering - has found the state oil giant to have higher reserves than it previously reported, sources familiar with the matter told Reuters.

Saudi Arabia's reserves of easily recoverable oil have long been the world's largest.

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Two sources, speaking on condition of anonymity, said the independent external audit has found the proven oil reserves to be at least 270 billion barrels, which is slightly higher than the 260.8 billion barrels the company reported in its 2016 annual review.

Having an internationally recognised reserves audit has become a key task for Aramco as it seeks to become the world's most valuable company when it lists a 5 per cent stake in an IPO later this year or early 2019.

Aramco's official reserves figures were "more than confirmed" said one source. "This is good for the company's valuation," another source said.

For nearly 30 years, Riyadh has annually reported the same number for reserves at around 261 billion barrels, according to BP's statistical review.

A reserves total significantly above or below the 261 billion figure would likely affect Aramco's potential market value in the listing and is being closely watched by investors. - Reuters