Saudi Arabia’s sovereign wealth fund has taken holdings in four major European oil and gas companies, with a total value of approximately $ 1 billion. Insiders reported this with knowledge of the matter. These would be Shell, the French Total, the Italian Eni and the Norwegian Equinor.
According to the sources, the Saudis think that those companies are currently undervalued on the stock market, due to the low oil prices and the corona crisis. The pieces were bought on the open market in recent weeks by the Saudi public investment fund (PIF). The PIF may be able to continue stocking even further.
The state investment fund’s assets under management are approximately $ 300 billion. The PIF normally focuses more on investments outside the oil and gas industry in order to make the economy of Saudi Arabia less dependent on energy. For example, a major interest was recently taken in the American cruise line Carnival, which has been hit very hard by the corona crisis.