Saudi Aramco is seeking buyers for up to five gas-fired power plants that could fetch around $4 billion, according to three sources familiar with the matter, as the oil giant moves to divest assets amid mounting fiscal pressures on the Saudi government.
The potential sale represents the latest effort by the world's most profitable company to generate cash while the kingdom grapples with lower oil prices and ambitious spending plans that have strained state finances.
The gas-fired plants, which supply power to Aramco's refineries, are among several assets the company is considering for sale, sources told Reuters1. Other potential divestments include housing compounds, pipelines, and port infrastructure, as Aramco looks to improve efficiency and cut costs.
Local businesses, including Saudi utility firms, could emerge as interested buyers for the power assets, one source said1. The company fully or partly owned 18 power plants and related infrastructure as of its 2024 financial report1.
Aramco declined to comment on the potential asset sales, and Reuters could not determine a timeline for the transactions1. The three sources spoke on condition of anonymity because the process remains private.
The asset sales come as Saudi Arabia faces budget constraints despite substantial oil revenues. The kingdom recorded a deficit of more than $30 billion in 2024, even with a $199 billion windfall from Aramco1. Oil receipts comprised 62% of state revenues last year.
Aramco, which is 81.5% owned by the Saudi government, will slash dividend payouts by nearly a third this year as lower oil prices affect income1. The company sold $5 billion in bonds in May and has indicated plans for additional borrowing1.
The divestment strategy coincides with Crown Prince Mohammed bin Salman's massive domestic projects aimed at diversifying the economy away from oil dependence. Saudi Arabia is investing hundreds of billions of dollars in initiatives including the Expo 2030 world fair and the FIFA World Cup 20341.
The asset sales also come as Aramco simultaneously expands its gas production capacity. The company awarded contracts worth more than $25 billion last year to boost sales gas production by over 60% by 2030, compared to 2021 levels2. Key projects include the $100 billion Jafurah unconventional gas field development3.
"The scale of our ongoing investment at Jafurah and the expansion of our Master Gas System underscores our intention to further integrate and grow our gas business to meet anticipated rising demand," Aramco CEO Amin Nasser said in announcing the gas expansion contracts2.
