Aramco Plans to Sell Power Plants to Raise Money for the Government
Saudi Aramco is thinking about selling four to five power plants that use gas and supply electricity to its refineries. The company hopes to make around $4 billion from the sale, according to a report by Reuters.
Why the Sale?
The goal is to save money, work more efficiently, and send more money to the government. Since oil prices have dropped, the government is earning less from oil. The government owns over 80% of Aramco and depends on it for income through taxes and dividends.
This year, Aramco is expected to cut its dividend payments by almost one-third due to lower oil prices.
The company might also sell other assets, such as worker housing, pipelines, and ports. Aramco owns or partly owns 18 power plants that help run its gas and oil operations. More plants, like the Tanajib Gas Plant, are expected to start working this year.
There is no set date yet for the sale. Some local power companies may be interested in buying the plants, sources said.
Aramco’s Other Investments
Besides oil, Aramco is also involved in aviation, construction, and sports. In past deals, it has kept control of key parts like pipelines.
Oil Market Pressures
Aramco is trying to stay profitable while oil prices are low. It also plans to invest in other countries, like China, Chile, and the U.S.
Saudi Arabia needs oil prices above $90 per barrel to balance its budget, but current prices are closer to $60.
OPEC+ (a group of oil-producing countries) has already increased oil output by 411,000 barrels per day in recent months, which is more than they had planned. A meeting on Saturday will decide if there will be another big increase in oil production.
Published: 5th July 2025
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