Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
Saudi Aramco is evaluating the sale of stakes in several infrastructure assets as part of a broader effort to raise substantial capital and support Saudi Arabia’s economic diversification plans. Among the assets under review are sulphur storage and export facilities, oil export terminals, real estate holdings, water infrastructure and power assets. Sources indicated that the potential fundraising pipeline could be worth around USD 50 billion. The move comes as Aramco continues to seek operational efficiencies, lower costs and attract external investment while advancing major projects such as the USD 100 billion Jafurah gas development.
Saudi oil giant Saudi Aramco is considering the sale of a stake in its sulphur business as part of a wider strategy to unlock value from its infrastructure portfolio and raise fresh capital, according to sources familiar with the matter.
The company has been seeking external funding to support Saudi Arabia’s long-term economic diversification agenda at a time when fiscal pressures have increased. Over the past year, Aramco has also been focused on improving efficiency, reducing costs and monetising selected infrastructure assets.
Sources said the total value of assets that could potentially be included in future fundraising initiatives may reach around USD 50 billion. As part of these plans, Aramco reportedly invited banks in the past month to submit proposals for a sulphur-related transaction internally known as Project Yellowstone.
One source indicated that the proposed sulphur deal could raise up to USD 7 billion. The assets being evaluated primarily include sulphur storage and export terminals. However, discussions remain at an early stage, and the company is still reviewing which assets would ultimately be included. According to one source, a transaction is unlikely to be launched before next year.
Sulphur is produced during the processing of natural gas, where hydrogen sulphide is removed to make the gas suitable for export. Aramco markets sulphur through its trading division and is regarded as one of the region’s largest exporters of the commodity through the Gulf and Red Sea corridors.
The company is also examining other potential monetisation opportunities across its infrastructure network. Sources said Aramco is considering a transaction involving oil export terminals, with one estimate placing the value of the related assets at up to USD 25 billion. The process is reportedly being timed according to regional market conditions and geopolitical developments.
Real estate assets are also under review, including Aramco’s headquarters campus and other property holdings. Sources suggested these assets could carry an estimated value of around USD 10 billion.
In addition, Aramco is evaluating the sale of water infrastructure assets linked to its crude oil operations under a project known internally as Project Hydro. Sources indicated that the transaction could generate approximately USD 500 million. Saudi-based water and wastewater infrastructure company Miahona and UAE-based Metito Utilities are among parties reported to have shown interest in the assets.
The company is also continuing work on plans involving gas-fired power plants. Reuters had previously reported that Aramco was exploring the sale of power generation assets valued at more than USD 4 billion.
Aramco remains more than 97% owned by the Saudi government, its sovereign wealth fund and related entities. The company is a key contributor to government revenues through dividends and royalties and remains central to the kingdom’s economic plans.
At the same time, Aramco is pursuing its ambition of becoming a major global natural gas producer. A significant part of that strategy is the USD 100 billion Jafurah gas development project. In the past year, the company completed an USD 11 billion lease-and-leaseback transaction involving Jafurah gas processing facilities with a consortium led by Global Infrastructure Partners, owned by BlackRock.
Source Reuters
Advertisement
Facebook
Whatsapp
