Saudi oil giant Aramco is looking to sell up to five gas-fired power plants, three sources told Reuters, as part of a broader effort to free up funds that could generate tens of billions of dollars.
The potential sale of four or five gas-fired plants that power refineries could alone raise around $4 billion as the Saudi government pushes Aramco to increase profits and payouts to the state, two of the sources said.
Aramco, the world’s most profitable company and the main source of Saudi state income, has been looking to sell some assets, improve efficiency and cut costs, Reuters has reported.
The company will also slash dividend payouts by nearly a third this year as lower oil prices hit its income.
The state, which directly owns 81.5 per cent of Aramco, is heavily reliant on the payouts, which include royalties and taxes.
Besides the sale of the gas-fired plants, the company could divest assets such as housing compounds and pipelines, two of the sources said. Port infrastructure assets could also be up for sale, one of them and a third person said.
Aramco declined to comment on the potential asset sales and had no immediate comment on the amount of money the fundraising drive could yield.
Local businesses like Saudi utility firms could be interested buyers, one of the sources said.
Aramco fully or partly owned 18 power plants and related infrastructure locally supplying energy to its gas plants and refineries, according to its 2024 financial report. Other power plants are expected to come onstream soon. The Tanajib Gas Plant project is expected to start operations this year.
&uuid=(email))