Saudi oil giant Aramco is looking to sell up to five gas-fired power plants, three sources with knowledge of the matter told Reuters, part of a broader effort to free up funds that could generate tens of billions of dollars.

 

The potential sale of four or five gas-fired plants that power refineries could alone raise around $4 billion as the Saudi government pushes Aramco to increase profits and payouts to the state, two of the sources said.

 

Aramco, the world's most profitable company and the main source of Saudi state income, has been looking to sell some assets, improve efficiency and cut costs, Reuters has reported.

 

The company will also slash dividend payouts by nearly a third this year as lower oil prices hit its income.

 

The state, which directly owns 81.5% of Aramco, is heavily reliant on the payouts, which include royalties and taxes.

 

Besides the sale of the gas-fired plants, the company could divest assets such as housing compounds and pipelines, two of the sources said. Port infrastructure assets could also be up for sale, one of them and a third person said.

 

Meanwhile Bloomberg News has reported that asset manager BlackRock is in talks with Aramco to divest its stake in the leasing rights of a natural gas pipeline network back to the state oil major.

 

The stake, which BlackRock acquired in 2021, is likely to be worth billions of dollars, stated the report, citing people familiar with the matter.

 

The potential divestment of Aramco's non-core assets comes as the company navigates lower oil prices, shrinking profits, and rising fiscal demands from the Saudi government, which owns more than 81 per cent of the company.