Saudi Aramco exploring potential to offer more deals; CEO

By Amirtha P S, Desk Reporter
  • Follow author on
Saudi Aramco
Representational Image

Saudi Arabia’s multinational petroleum and natural gas company, Saudi Aramco is currently looking for other potential deals to offer to investors and unlock capital, Chief Executive Mr. Amin Nasser said after the oil giant in June closed a $12.4 billion deal for its crude pipeline network.

During a call with analysts, Mr. Nasser has stated that “We are looking at the potential for other deals that we are currently in negotiation.” 

Earlier this year sources have stated that 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. The gas pipeline stake sale will be a “copy-paste” of the oil pipeline deal, one of the sources said. However, Aramco declined to comment.

The Gulf oil producers including Aramco are currently following the path of Abu Dhabi by aiming to raise billions of dollars through the sale of stakes in energy assets, capitalizing on a rebound in crude prices to attract foreign investors.

Further, Mr. Nasser explained the opportunities for the company in the hydrogen market. Aramco was looking for offtake agreements with potential buyers before it can expand its output in hydrogen but there is strong potential for growth and exports, he added. 

“We are looking to capture a big percentage of that market, we have an advantage,” Mr. Nasser said. An offtake agreement occurs between a producer and a buyer to purchase or sell portions of the producer’s upcoming output.

Last day, in a call with investors, Mr. Nasser stated that Saudi Aramco is exploring opportunities in blue hydrogen and is actively looking to export to key markets in Asia. The oil giant is also holding discussions with major markets like Japan and Korea.

Countries across Europe and North America are also looking at ways to produce emissions-free hydrogen to help reduce carbon emissions and avert global warming. Earlier this month, Abu Dhabi National Oil Co (ADNOC) in partnership with Fertiglobe sold its first cargo of blue ammonia to Itochu Corp in Japan, for use in fertilizer production.

Related: Saudi Aramco marks $25bn Q2 profit as major economies revive