Saudi Aramco said to be seeking $10-billion loan

Saudi Aramco, the largest oil exporter in the world, could receive a $10-billion loan to be used to fund acquisitions and other investments, according to four people with knowledge of the matter, Bloomberg News has reported.

The national oil and gas company is said to be in negotiations with global and local banks for the credit, to replace an undrawn $4-billion loan.

Saudi Aramco has been expanding into refining and petrochemicals as it strives to increase ties with Asia, having acquired a $2-billion share in South Korean oil refiner S-Oil Corp in 2014. The company is also in talks to raise $8 billion to fund the expansion of Rabigh Refining & Petrochemicals, its joint venture with Japan’s Sumitomo Chemical.

Consolidations and acquisitions are expected to increase further in the global energy industry, after jumping by 68 percent to $35 billion in 2014, with the plunge in oil prices pushing down companies’ profits and leading to cuts in exploration spending.