(Updates with background)
By Maha El Dahan and Aziz El Yaakoubi
RIYADH, May 11 (Reuters) - Saudi Aramco has
seen progress slow for the planned initial public offering (IPO)
of its energy trading unit, two sources with knowledge of the
matter said on Thursday.
Bloomberg earlier reported the oil giant would postpone the
IPO, citing people with knowledge of the matter.
Reuters reported in June last year that Aramco would merge
Aramco Trading with Motiva Trading, which has the largest
refinery in the U.S., ahead of a planned IPO.
The deal completed in January, with Motiva Trading becoming
Aramco Trading Americas, acting as Aramco Trading's regional
office.
Saudi Aramco and other Middle Eastern producers accelerated
their trading efforts as a way to boost incomes after the 2014
collapse in oil prices. They have slowly gained market share
from oil majors and Swiss commodity merchants, using access to
their own feedstocks and strength in refining to compete
aggressively.
Aramco's share of U.S. oil imports has declined in recent
decades as it turned more to Asia and as U.S. shale output grew.
However, refiner Motiva remains an important outlet for Saudi
crude and its entry point into the world's biggest oil consuming
market.
(Reporting by Maha El Dahan in Dubai and Aziz El Yaakoubi in
Riyadh; Writing by Yousef Saba
Editing by Mark Potter)
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