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Aramco to raise billions from asset sales

Saudi Aramco plans to raise $10 billion from a stake sale in Aramco’s pipelines.

Saudi Aramco plans to raise $10 billion from a stake sale in Aramco’s pipelines.

Informed sources said that Aramco, the largest oil company in the world, has hired Moelis & Co. to build a strategy to sell stakes in some subsidiaries.

Moelis declined to comment on the matter, and Aramco did not respond to email requests for comment.

Moelis had assisted Abu National Oil Co. to raise more than $15 billion in 2020 from companies like Apollo Global Management Inc., Brookfield Asset Management Inc. and Singapore’s sovereign wealth fund.

It played a part in almost all the state-owned energy firms’ major asset disposals.

Adnoc, which pumps almost all UAE’s oil and OPEC’s third-biggest producer, has sold shares in its fuel-retail arm and leasing rights for properties and natural-gas pipelines.

Faster way

Aramco’s initial public offering in December 2019 raised almost $30 billion. however, the process took but took around two years to complete.

The Dhahran-based firm issued $8 billion of bonds last month to fund the world’s biggest dividend. But, its executives have said they want to lower the company’s leverage following its $69 billion acquisition of chemical marker Saudi Basic Industries Corp. this year. 

Meanwhile, Bloomberg said in April the energy firm has lined up banks including JPMorgan Chase & Co. to help with a stake sale in the pipeline business.

Moelis was among the banks that arranged Aramco’s IPO. Its founder, Ken Moelis, has long experience of deal-making in the region, to the point he was nicknamed “Ken of Arabia.”

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