Aramco's valuation could rise to $1.4 tln on tax cut: Rystad Energy

State-run Saudi Aramco's valuation could rise to range between $400 billion and $1.4 trillion following the kingdom's decision to cut taxes on oil producers, consultancy firm Rystad Energy said on Tuesday in a note.

The tax cut would increase Saudi Aramco's by $1 trillion, based on a price of $75 per barrel in the medium to long term, Espen Erlingsen, vice president of analysis, added.

Saudi King Salman issued a royal decree on Monday, cutting oil and hydrocarbon sector taxes to 50 percent from 85 percent to attract investors ahead of the planned initial public offering (IPO) of the major oil producer, Argaam reported.

The kingdom is planning to sell up to 5 percent of the oil giant next year. Deputy Crown Prince Mohammed bin Salman had earlier said Aramco is worth about $2 trillion.