Monday, October 18, 2021

Saudi Aramco scouting for more deals to offer to investors

Must read

imageCommodities58 minutes ago (Aug 09, 2021 11:11AM ET)

(C) Reuters. FILE PHOTO: Saudi Aramco CEO Amin H. Nasser attends the China Development Forum in Beijing, China, March 25, 2019. REUTERS/Thomas Peter/File Photo


DUBAI (Reuters) – Saudi Aramco (SE:2222) is scouting for other potential deals to offer to investors and unlock capital, Chief Executive Amin Nasser said on Monday after the oil giant in June closed a $12.4 billion deal for its crude pipeline network.

“We are looking at the potential for other deals that we are currently in negotiation (about),” Nasser said on a call with analysts.

Aramco had reached out to banks to pitch for an advisory role to help finance the sale of a significant minority stake in its gas pipelines, three sources told Reuters in June. The gas pipeline stake sale will be a “copy paste” of the oil pipeline deal, one of the sources said. Aramco declined comment.

Aramco and other Gulf oil producers are following in the footsteps of Abu Dhabi with plans to raise tens of billions of dollars through the sale of stakes in energy assets, capitalising on a rebound in crude prices to attract foreign investors.

Nasser also told the briefing there were opportunities for the company in the hydrogen market. He said Aramco was looking for offtake agreements with potential buyers before it can expand its output in hydrogen, but added he sees strong potential for growth and exports.

“We are looking to capture a big percentage of that market, we have an advantage,” Nasser told the analysts’ briefing.

An offtake agreement occurs between a producer and a buyer to purchase or sell portions of the producer’s upcoming output.

Countries across Europe and North America are looking at ways to produce emissions-free hydrogen to help reduce carbon emissions and avert global warming.

Abu Dhabi National Oil Co (ADNOC) in partnership with Fertiglobe this month sold its first cargo of blue ammonia to Itochu Corp in Japan, for use in fertiliser production, it said on Aug. 3.

Saudi Aramco scouting for more deals to offer to investors

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Latest article