Saudi Arabia sees its oil reserves lasting another 70 years

[DUBAI] Saudi Arabia, the biggest oil exporter, sees its crude reserves of 266.5 billion barrels lasting 70 more years and hasn't sought an independent consultant to review the figures, according to a bond prospectus seen by Bloomberg News.

The nation's wealth is based mainly on oil, with crude sales accounting for 75 per cent of total export earnings, according to the prospectus. Saudi Arabia plans to sell at least US$10 billion in bonds maturing in five, 10 and 30 years, and it disclosed plans to hold investor meetings in London, Los Angeles, Boston and New York starting on Wednesday.

The kingdom expects to sell a stake in state-run producer Saudi Arabian Oil Co, which held 261.1 billion barrels of total Saudi reserves. The sale could involve either the parent company Saudi Aramco, as it's known, its subsidiaries, or both, according to the prospectus. The Saudi methodology for calculating its reserves may differ from that used by other producers or US securities regulators, according to the prospectus.

International oil companies report their reserves to show they're finding enough new deposits to replace the crude they're selling. In the US, the Securities and Exchange Commission regulates reserve calculations made by companies that are publicly traded in the country.

BLOOMBERG