Saudi oil giant Aramco is trying to sell up to five gas-fired power facilities as part of a larger drive to raise money that could produce tens of billions of dollars.  

 

As the Saudi government pressures Aramco to boost profitability and payments to the state, the possible sale of four or five gas-fired plants that supply energy to refineries alone might generate about $4 billion.

 

The most lucrative corporation in the world and the primary source of Saudi state revenue, Aramco, has been seeking to reduce expenses, increase efficiency, and sell off some assets.

 

As weaker oil prices impact its revenue this year, the business will also cut dividend payments by about a third.

 

81.5% of Aramco is directly owned by the state, which is highly dependent on the distributions, which include taxes and royalties.

 

In addition to selling the gas-fired facilities, the business might sell off assets like pipelines and housing compounds. Port infrastructure assets might possibly be for sale.

 

Local companies like Saudi electricity companies would be prospective purchasers.

 

According to its 2024 financial report, Aramco controlled 18 power plants and associated infrastructure in full or in part, which provided electricity to its refineries and gas plants locally.

 

It is anticipated that more power plants would shortly come online. It is anticipated that the Tanajib Gas Plant project will begin operations this year.

 

Aramco’s possible asset sales align with Saudi Crown Prince Mohammed bin Salman’s ambitious domestic projects aimed at diversifying the country’s economy away from oil in the face of plummeting crude prices.

 

Despite a $199 billion windfall from Aramco, the Saudi budget showed a shortfall of over $30 billion in 2024, with oil receipts accounting for 62% of governmental revenues last year.

 

In May, Aramco announced plans to borrow more money and sold $5 billion worth of bonds.

 

The nation is investing hundreds of billions of dollars in projects, including major events like the FIFA World Cup 2034 and the Expo 2030 world fair.

 

Aramco is also looking to attract investors in order to raise money for infrastructure.