Saudi Aramco has entered an initial phase of talks with several investors on a plan to divest a stake in its pipeline business, Reuters reported, citing two sources familiar with the matter. According to the sources, the deal, internally called “Project Seek,” could be worth more than $10 billion, but investors have yet to make a formal decision. Aramco is expected to raise cash from the deal amid weak oil prices caused by the COVID-19 pandemic. The state-owned oil company is also facing a $75 billion dividend payout to investors pledged during its IPO in 2019.
The sources said the oil giant had hired JPMorgan and MUFG as the deal advisers. Another source said that the investors involved in the talks include the world’s biggest asset manager BlackRock and Toronto-based Brookfield Asset Management. The transaction is expected to mimic ADNOC’s infrastructure deals signed in 2019 and 2020. The company is leasing its pipeline assets to investors to raise billions of dollars. BlackRock, Brookfield, and KKR & Co were among investors involved in ADNOC’s deals.
