Saudi state-owned oil major, Aramco, is considering selling up to five gas-fired power plants to raise cash, Reuters reported, quoting three people familiar with the situation.
The decision is part of a broader plan to free up funds that could generate tens of billions of dollars for the company, with the estimates putting the value of five power plants at $4 billion.
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, according to the news agency.
Aramco 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.
The company will also sell other assets such as housing compounds, pipelines and maybe port infrastructure assets, the sources said.
Aramco operates several captive and joint-venture power generation facilities to support its upstream and downstream operations. These power plants are crucial for providing electricity and steam to Aramco’s refineries, gas plants, petrochemical complexes, and offshore facilities.
