Saudi Arabia-based oil and gas supplier Saudi Aramco is considering the formation of a $1bn strategic investment fund, the Wall Street Journal reported yesterday, citing people familiar with the proposal.
The fund would look to make multimillion-dollar investments in developers of technologies that would complement its parent’s operations, and its formation could involve the opening of a US office, likely in Silicon Valley, the sources said.
Saudi Aramco already owns a corporate venturing unit, Saudi Aramco Energy Ventures (SAEV), which it launched in 2012 to invest in technologies related to up and downstream oil and gas, water, petrochemicals, renewable energy and energy efficiency.
SAEV operates out of offices in the Middle East, Europe, the US and east Asia and has been equipped with $500m of capital. Its portfolio includes 3D metal printer producer Desktop Metal, gas-to-chemicals technology developer Siluria and collaboration software provider Parasable.
Although it is unclear how the proposed fund would complement SAEV, news of its possible formation comes weeks after reports that Saudi Aramco has dropped plans for an initial public offering expected to be in the multibillion-dollar range.