Aramco eyes $4 billion from stake sales amid fiscal tightening

Saudi Aramco is reportedly preparing to sell up to five gas-fired power plants in a move that could raise as much as $4 billion, according to sources familiar with the matter. The asset sale is part of a broader strategy by the world’s most profitable oil company to free up capital, maintain shareholder payouts, and align with Saudi Arabia’s Vision 2030 economic diversification goals. The potential divestment of these non-core assets, mostly power stations that supply energy to Aramco’s refineries, 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 Aramco. The government relies heavily on Aramco's dividend payouts, royalties, and taxes to fund national megaprojects such as Expo 2030 and the FIFA World Cup 2034.

Strategic capital reallocation

Selling these assets would allow Aramco to reallocate capital toward higher-growth and future-oriented sectors, including carbon capture, green hydrogen, and advanced infrastructure projects. While the company reported a modest dip in net income to $26 billion in Q1 2025, it raised its base dividend to $21.1 billion. However, it withheld a performance-linked dividend, signalling a more cautious approach to cash management amid global energy market volatility.

Analysts say the divestment strategy aligns with global energy giants like ExxonMobil and Chevron, which have also shed non-core infrastructure to focus on upstream oil and gas operations. In addition to power plants, Aramco is reportedly exploring the sale of housing compounds, port infrastructure, and pipeline stakes.

BlackRock stake buyback under consideration

In a parallel development, asset manager BlackRock Inc. is in early talks to sell its stake in Aramco’s gas pipeline network back to the Saudi oil giant. BlackRock had led a consortium that acquired a 49 per cent stake in the pipeline leasing rights in a 2021 deal valued at $15.5 billion. A potential buyback would signal Aramco’s continued interest in consolidating control over core energy infrastructure, despite rising debt levels.

The company’s CEO, Amin Nasser, said in May that Aramco plans to increase borrowing to fund growth, support dividend stability, and leverage its balance sheet more effectively. The firm has already raised $5 billion through a bond issuance this year, part of a broader return to debt markets after a three-year hiatus.

While asset divestments and increased borrowing may raise questions about Aramco’s short-term liquidity pressures, the moves appear designed to balance shareholder interests with long-term investment in national economic transformation. If executed effectively, the strategy could enhance resilience amid a shifting global energy landscape.