Saudi Aramco seeks war-related insurance cover after September attacks


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Saudi Aramco seeks war-related insurance cover after September attacks

Saudi Aramco, the state-backed oil giant of the Kingdom of Saudi Arabia, had been seeking to purchase insurance against war- and terror-linked damages following a cascade of catastrophic drone attacks on two of its oil facilities back in September that wiped away nearly half of the oil-dependent economy’s entire output and resulted in an abrupt price surge, at least two sources directly briefed over the subject-matter had unveiled on Wednesday, the 4th of November 2019, on condition of anonymity as the sources were not authorized to speak over the issue on public.

More importantly, breakout of Wednesday’s (December 4tgh) media report saying Saudi Aramco was exploring an option to buy insurance against terrorist attacks emerged into the air just a day ahead of a final IPO price announcement of the Saudi oil giant.

On top of that, the sources also added that the world’s largest oil company and the most profitable on an unaudited basis, Saudi Aramco had been in an advanced stage talk with insurers based on Lloyd’s of London and elsewhere in the London insurance market, nonetheless, given Aramco’s prior move to escape a public listing on US market over security reasons alongside a growing turbulence in the Gulf, purchasing an insurer outside the Gulf in a bid to bolster investors’ confidence seemed to be a far cry thus far, suggested analysts.