By Federico Maccioni and Yousef Saba

DUBAI (Reuters) – Saudi oil giant Aramco (TADAWUL:2222) is looking to sell up to five gas-fired power plants, according to three sources with knowledge of the matter. This effort is part of a broader strategy to generate tens of billions of dollars.

The sale of four or five gas-fired plants that are essential for powering refineries could raise around $4 billion, as the Saudi government urges Aramco to increase profits and payouts to the state.

Aramco, the world’s most profitable company and the primary source of Saudi state income, has been exploring asset sales, enhancing efficiency, and cutting costs, as previously reported by Reuters.

This year, the company will also reduce dividend payouts by nearly a third due to lowered oil prices affecting its income.

The state directly owns 81.5% of Aramco and is heavily dependent on payouts that include royalties and taxes.

In addition to selling gas-fired plants, Aramco may divest assets like housing compounds, pipelines, and possibly port infrastructure, according to two sources.

Aramco declined to comment on potential asset sales and had no immediate statement about expected fundraising amounts. The Saudi government communications office did not respond to Reuters’ requests for comments.

A timeline for the sale is not determined, and the three sources spoke anonymously due to the private nature of the process.

Local businesses, including Saudi utility firms, might be interested buyers, said one source.

According to its 2024 financial report, Aramco fully or partially owns 18 power plants and related infrastructure supplying energy to its gas plants and refineries. Other power plants are also anticipated to come online soon, with the Tanajib Gas Plant project expected to start operations this year.

The potential asset sales coincide with Saudi Crown Prince Mohammed bin Salman’s extensive domestic projects aimed at diversifying the economy away from oil, especially amid falling crude prices.

Oil receipts constituted 62% of state revenues last year, with the Saudi budget showing a deficit exceeding $30 billion for 2024, despite a $199 billion windfall from Aramco.

In May, Aramco issued $5 billion in bonds and hinted at further borrowing.

The country is investing hundreds of billions of dollars into projects, including prominent events like the Expo 2030 world fair and FIFA World Cup 2034.

Aramco is also seeking to attract investors for infrastructure funding, as reported by Reuters in May.