Aramco to take in billions in drive to offload interests

Saudi Arabia's predominantly public-owned Aramco is set to take in billions through offloading shares it owns.

The oil titan began looking at its portfolio in 2020, establishing a group to do so not long following the sink in the oil market caused by Covid-19, Bloomberg reported on Wednesday.

This April, Saudi Aramco brought in $12.4 billion by offloading "leasing rights" relating to oil pipelines.

Aramco senior VP for corporate development Abdulaziz Al Gudaimi laid out the rationale for moving ahead with offloading other interests over the coming years.

He related that Aramco is shortly to start arranging another new agreement, though no further details were given.

"It's a strategy meant to create value and create efficiency, it's not about a specific capital target or financing the dividends of the company" the Aramco official explained while being interviewed.

The high-level figure noted that the sell offs are to occur "irrespective of any market conditions" as the firm seeks "double-digit billions of dollars".

According to Bloomberg, the company wants to offload a natural-gas pipeline interest.

The business-centred news agency noted that Aramco has divisions operating in many other areas: from power generation to property.

There was no suggestion that these specifically were to be sold.

According to Al Gudaimi, the takings from Aramco's sale of assets are to be put to work in "future growth projects".

He explained that the audit of Aramco's interests had already been intended prior to the sharp decline in crude last year.

The April deal on the oil pipeline rights attracted funds originating in the UAE, China and America, as well as South Korea. It was worth over double the total "direct investment" made in Saudi Arabia from abroad last year.

Saudi Aramco reportedly in talks to sell one percent stake to major Chinese investor https://t.co/b9GUDGgb6K

— The New Arab (@The_NewArab) April 29, 2021

This latest oil report comes amid a rocky patch for OPEC+, or the international Organization of the Petroleum Exporting Countries and allies, which includes Saudi Arabia and neighbouring UAE.

Last week, the Emirates consented to a staggered increase in production of around 2 million barrels a day between August and December.

However, it rebuffed the idea of continued production cuts until the end of next year, after its scheduled April conclusion.

This has caused a serious spat between Saudi Arabia and the UAE, with Riyadh's energy minister rebuking Abu Dhabi.