Saudi Aramco weighs raising billions of dollars from its biggest disposals yet

Core Viewpoint - Saudi Aramco is considering significant asset sales, including stakes in oil export and storage terminals, potentially raising over $10 billion as part of its strategy to free up cash for investments and support the Saudi economy [1][2][6]. Group 1: Asset Sales - The firm is weighing the sale of a stake in its oil export and storage terminals, with banks being asked to pitch for feasibility studies for these disposals [1][2]. - Aramco is exploring options to raise fresh equity from the asset sales and may consider a structure similar to a recent $11 billion lease transaction with BlackRock for the Jafurah gas project [2][6]. - The terminals business is viewed as a lucrative asset, and a formal sales process could begin as early as early next year [2][5]. Group 2: Market Context - Oil prices have dropped by approximately 20% this year, prompting Aramco to delay some projects and seek asset sales to generate cash for investments [6][8]. - The company is also considering selling part of its real estate portfolio, which is expected to be valued in the billions and attractive amid plans for increased foreign ownership in the kingdom [2][5]. Group 3: Economic Impact - As the world's largest oil exporter, Aramco plays a crucial role in the Saudi economy, with revenue from energy sales and substantial dividend payouts supporting the kingdom's economic transformation efforts [7][8]. - The company continues to invest in major projects like Jafurah, which is set to start production this year and reach full capacity by 2030 [7][8].