Saudi Aramco hires Morgan Stanley for gas pipeline sale: press
Saudi Aramco has hired Morgan Stanley as the lead advisor for the sale of a stake in its natural gas pipeline network, Bloomberg reported on June 10 citing sources.
The sales process has not formally begun, although early preparations are underway, Bloomberg said, noting that the size of the stake that will be divested has not been decided yet. The media group said the sale could be restructured in a similar way to Aramco's recent $12.4bn sale of a 49% interest in its oil pipelines.
Aramco completed the transfer of the interest in its oil transport subsidiary to a consortium led by EIG Global Energy Partners in April this year. The Saudi oil company is leasing back the stake in the subsidiary, which has rights to 25 years of rate payments for oil supplied through the network.
Aramco has promised to pay $75bn in annual dividends despite the sting to its finances from the pandemic-triggered collapse in oil prices last year. Its net income was down 44% last year at $49bn, on weaker prices and lower production.