The following transcript is from Hadley Gamble's First On CNBC interview with Saudi Energy Minister Prince Abdulaziz bin Salman in Vienna.
HG: Your Excellency thank you for joining us. A lot of contentious conversations here at OPEC but you stood firm. Is there a new sheriff at OPEC?
HE Prince Abdulaziz bin Salman: No I wouldn't call it contentious. I would call it deep discussion, taking the stock of what we were doing the in the past two years and ensuring that our colleagues that had some problems to not performing that what was expected of them that they would all take the necessary assurances to do what they have committed themselves to. It's all voluntary what we need to do and how we can conduct ourselves and tending to our commitments. What you could do as a way forward given the assurances that are required. So it was not just me I think we are all the sheriff. Those that have discharged their commitment -- we're all the Sheriffs. I don't want to put it in that context because the Sheriff is always the villain. Respectively to the situation that some of the countries who were not performing they have given us a qualification if I can call it a likely a lack of adherence. We all understood it and we are all willing to move forward because what comes now is what we will do in the future and I am perfectly happy to say on behalf of everybody to say that we were given the assurances and therefore we moved ahead. That piece, the other piece is what we need to do next. And again we had to spend some good time to look at numbers, crunching numbers, looking at the statistics, looking at scenarios. Then comes the I wouldn't call it the science but it's the amalgam of science and how you divide this necessary prerequisites amongst first the OPEC countries and then OPEC non-OPEC. In a third way whereby we could assume these countries could be able to discharge their commitments. It's a very intricate balance, and it's tough sometimes simply because you have to be mindful of the concept of fairness.
HG: Walk me through what happens next – how quickly are we going to see a review of the deal you made today?
HE Prince Abdulaziz bin Salman: Well the new deal will quick in first of January. I think we will see better numbers of some countries and as I was promised by my friend from Nigeria that I will be in full compliance in the month of November which we will be able to verify in somewhere in mid-December. We were told also by our friend from Iraq that they have been doing something extra in terms of their performance. So the reality I think is we will be able to see also their performance, everybody's performance in December that will appear in mid-January. But the new deal will kick in on 1st of January and we will be able to see everbody's performance in Mid-February.
HG: How closely correlated was this decision to the pricing of the long-awaited Aramco IPO because we've already seen a reaction in oil since your comments a little earlier ago, 2%?
HE Prince Abdulaziz bin Salman: It just happened that the timing of the OPEC meeting was decided way in June, the timing of the IPO was decided more recently. If it was to be intertwined we would have elected to defer or bring it earlier, not to make it consult with any OPEC meeting
HG: So 30 years in the industry—
HE Prince Abdulaziz bin Salman: The fact they coincided tried to draw a correlation between the two. You know, some media outlet try to use that as a caveat for getting us to explaining what we are trying to do in this OPEC meeting.
HG: Would you describe that perception of Saudi Arabia as fake news?
HE Prince Abdulaziz bin Salman: No no. I hope not to associate not only the valuation, the company. The company which is Aramco, which is the biggest energy company in the whole world. Which has the cleanest slate of terms for delivery and performance and what have you and resilience we had as recently as September. It can never be evaluated by a tweak here, or a tweak there or a 1 percent here or 1 percent there. And by the way, a testament will look at that book and see who had subscribed to Aramco because you see lots of pension funds, lots of banks, lots of sovereign funds and big time mix endowments. Surely what we deduce from that is that they're in it for the long-term.
HG: So 30 years in the industry – how would you describe a success for the Kingdom for the Aramco IPO as it goes live next Wednesday?
HE Prince Abdulaziz bin Salman: I would tell you two things. I will maybe be remembered reprimanded for divulging that but a bright day of my life. I think it's the most., brightest and proudest day of my life when we decided to make this IPO more a family and friends. I did change it not friends and family but I will do family and friends. We will also inclusive because I don't want people to take the wrong impression that we were somewhat xenophobic about the existence of foreign participation but it was a decision we had to take because we wanted to make sure that the valuation benefit goes to first and foremost to our people, our endowments, to our friends, to those who believe in Saudi Arabia in Aramco, believe in Saudi Arabia, the country, the stable country politically and economically and the company and what is the ecosystem that this company is operating under.
HG: Did it hurt that there was a suggestion that you wouldn't get that feeling with an international listing?
HE Prince Abdulaziz bin Salman: I never believed that an international listing would give us that valuation. What I believe is that once this company is traded, some of the guys who had had this questionable think will be ouching and will be chewing their thumbs. I hope they don't hurt themselves and they don't go to hospital for any treatments.
HG: Do you think we will see an international listing down the pipeline?
HE Prince Abdulaziz bin Salman: Well when Prince Mohammed operates in a good way remember I did say in the FII did say – I think you had it – I did say we will do it at the right time, the right place, the Saudi way, and it is going to be done as I say with the decision from Prince Mohammed himself. I think he made the right call, the testament is the 4.65 coverage of the IPO and I felt that more testament of his wise decision and timely decision would be once we start trading that company. I don't see them ask questions. I don't want to see them ouching. I argued next time we do another IPO they will be fast and furious running with their checks coming to the banks and listing for a likable shares of Aramco.
HG: One person who has remained remarkably silent over the last couple of days which is a bit new for him is the US President Donald Trump over the last couple of years—
HE Prince Abdulaziz bin Salman: I wouldn't call it rhetoric.
HG: What would you call it?
HE Prince Abdulaziz bin Salman: He is the President of the United States. He has every right everything that he wants to.
HG: You just gave him a big gift. Do you think?
HE Prince Abdulaziz bin Salman: Well, I don't. I gave my country a gift. I'm more concerned about giving my country, our people the gifts that I could ever give--
HG: But in terms of shale producers--
HE Prince Abdulaziz bin Salman: My own blood and sweat and time and effort and everything I could do that. I'm a bit emotional now cause once you talk about country, all of this rationalism of mind you just switch off and I become a ball of emotion. So, I said, at the pleasure of His Majesty, the King, Crown Prince. I am a proud citizen of serving my own people and our own people in our own, in my own country.
HG: So when it comes to the shale producers, though, it seemed as if they're highly indebted, highly indebted. You've had them over the rocks. And you seem to have tossed them a lifeline, no?
HE Prince Abdulaziz bin Salman: Well, what we need is
HG: What happened to the battle for market share?
HE Prince Abdulaziz bin Salman: I can't wait to be somewhere in Texas or Oklahoma or those regions that are going through the trouble and say, choose what makes you think there will be two Brits? The Brits would say, cheers, mate. We're, we're in solidarity with you. And by the way, you know, in their defense, what did they do? They didn't do anything wrong. They produce more barrels. They put the US in the map in terms of its energy requirements. They are growing the economy. They're creating jobs. They're creating, uh, a much more secure energy mix to the US. They're resolving a predominantly serious occupation with regard to security of supply. They did a remarkable job.
HG: Are we ever going to see some kind of formal organization in terms of communications between shale and OPEC?
HE Prince Abdulaziz bin Salman: I understand that legal limitation. I am not, you know, the born-yesterday person. I know there are all sorts of, uh, anti-trust issues and what have you. But, we're doing it for ourselves. The fact that other producers were not a party to this gathering, well, we would welcome it. But we also understand every country's legal limitations and we would be more than happy to help. And, you know, we get invited around quite big offices in Houston. We work with many of the international oil companies. We have partnership. We belong to the same club. And by the way, Aramco is going to go more and more international and it will be our endeavor. And it is our endeavour to make Aramco nothing different than a typical IOC.
HG: They have a lot to answer to when it comes to shareholders, a typical IOC.
HE Prince Abdulaziz bin Salman: The typical IOC, when the shareholder is in this time around is the government of Saudi Arabia. The main shareholder. But Aramco goes through a lot of grilling as a typical shareholder, too.
HG: Sir, I have to ask you quickly about security. The latest U.S. intelligence has said that Iran is placing short range ballistic missiles inside Iraq and those have a range of a thousand kilometers, which is about 650 miles. That puts it well in range of Aramco facilities. Are you concerned about the security of Aramco today?
HE Prince Abdulaziz bin Salman: Well, we've seen the havoc that they have done in September 14th. I'm also assured that our government and many other countries that show the importance of protecting these facilities that every necessary measure should be taken. I have to-- I cannot leave here without making sure that everybody understands. But again, that impacting on a facility does not just, in fact, impact Saudi Arabia or the Saudi economy or the Saudi citizen. No, it affects every citizen in the whole world because any big impacts from Aramco crude supplies would permeate all the way to every household anywhere in the world.
HG: And that's ostensibly why the U.S. president decided to send thousands of U.S. troops into Saudi Arabia. What would be your message to the parents of thousands of soldier that are going to Saudi Arabia to ostensibly protect Saudi oil supplies?
HE Prince Abdulaziz bin Salman: I owe it also to we're grateful for the help that we're getting from the US. We are also, emphasize also we are grateful to the sympathy and support that we get from everywhere in the world. I think that spirit should prevail, that the protection of Saudi Arabia, the protection of the water lanes, the protection of Aramco facility is not just an issue that would be just of concern of Saudi Arabia and Saudi governments and Saudi people, but also the whole world. The whole world needs to understand every household need to understand that fiddling with security of supply of energy is a taboo. And the whole world needs to do everything to make sure that this is not going to be permitted.
HG: Does that mean you would welcome more U.S. troops to the region?
HE Prince Abdulaziz bin Salman: Well, I leave it to the those who are attending to this issue. I am more of an energy minister and I have enough on my plate. Well, this is where I could add value to. This other subject, it's not my topic. And I have no interest --
HG: But you just said they're completely intertwined?
HE Prince Abdulaziz bin Salman: Well they're intertwined, but, you know, we believe in division of labor. I do my job in the area that I know better. And I know also that we have the capable people that are attending to that other side of the story.
HG: Your Royal Highness thank you so much for joining CNBC first from OPEC.