With fires of war still burning, Saudi Aramco accelerates its 'monetization' drive! Plans to sell $35 billion in infrastructure and real estate equity.

Saudi Aramco is advancing the largest asset privatization initiative in its 93-year history—aiming to raise up to $35 billion by selling non-core assets including infrastructure and real estate, thereby strengthening its balance sheet and attracting foreign investment. According to media reports citing informed sources, related transactions are already underway, covering sale-and-leaseback arrangements for real estate assets such as its headquarters campus; sales of equity stakes in oil export and storage terminals; and deals involving gas-fired power plants and water infrastructure businesses. Sources indicate that despite ongoing hostilities in the Middle East, these assets remain highly attractive and are expected to generate broad interest from Wall Street institutions. This round of asset sales is being expedited against the backdrop of regional conflict—a timing that is particularly sensitive. Since the outbreak of hostilities on February 28 this year, Gulf exports have been disrupted and global M&A markets have grown more cautious overall. Yet Saudi Aramco’s privatization drive has not slowed. Analysts note that the strategic rationale behind this move has shifted—from optimizing non-core asset allocation to maximizing liquidity under wartime pressure. BlackRock Agreement Opens the Floodgates The immediate catalyst for this large-scale divestment was a $11-billion natural gas facility leasing agreement signed between Saudi Aramco and a consortium led by Global Infrastructure Partners (GIP), a BlackRock affiliate. According to Bloomberg, following the deal’s announcement, funds from around the world began contacting Saudi Aramco en masse to seek participation opportunities. This strong demand signal further solidified management’s resolve to pursue broader asset monetization. Headquartered in Dhahran, Eastern Province, Saudi Arabia, the company’s executives swiftly began designing what is now its most ambitious privatization plan to date. Informed sources say that while retaining full control over upstream assets, the company remains open to selling minority stakes in midstream and downstream assets. Export Disruptions, Fiscal Pressure The war has directly impacted Saudi Aramco’s export operations. Traffic through the Strait of Hormuz has plummeted, forcing the company to reroute most of its cargo via the East–West Pipeline to the port of Yanbu for export. According to Bloomberg ship-tracking data, this adjustment has enabled Saudi Arabia to restore roughly 60% of its pre-war export volume—but overall export levels remain significantly constrained. Against this backdrop, Saudi Aramco’s asset-sale program has taken on heightened fiscal urgency.

Saudi Aramco: What justifies its status as the 'uncrowned king' of the global energy industry?

Crude oil production cost: only $2 per barrel; natural gas production cost: $1 per barrel of oil equivalent—far below the international oil industry’s average of $40–$60 per barrel. Even amid sharp declines in global oil prices, Saudi Aramco remains profitable—possessing world-leading resilience against market volatility. 3. Full-value-chain control: layered profit enhancement, minimizing intermediate losses From upstream exploration and production, through midstream storage, transportation, and trading, to downstream petrochemical refining—Saudi Aramco maintains integrated control across the entire value chain. It also invests in technical services and digitalized operations, maximizing crude oil’s added value and avoiding the narrow profit margins inherent in merely selling raw resources. 4. Pricing power: shaping global oil supply, demand, and pricing As a core OPEC member, Saudi Aramco effectively steers oil output and pricing policy. Its stable daily output of 12 million barrels serves as the ‘ballast stone’ of the global oil market—enabling it to directly influence oil price trends through production increases or cuts, thus holding absolute authority over market regulation. III. Financial strength: unmatched profitability globally, with abundant cash flow—no need for external financing In 2025, Saudi Aramco reported $480.2 billion in revenue and $105.9 billion in net profit—achieving a net margin exceeding 25%, far above the industry average for international oil companies. Its revenue structure follows a ‘single-core, multi-wing’ model: ・ Crude oil production and sales (70%): accounts for over 20% of global crude exports; China is its largest buyer, satisfying one-eighth of global crude demand; ・ Natural gas business (15%): The Jafurah gas field represents its second growth engine—once fully operational, it will generate an additional $12–15 billion in annual operating cash flow; ・ Petrochemical refining (10%): Breakthroughs in COTC (crude-to-chemicals) technology enable direct conversion of crude into chemicals, boosting added value by over 50%, with an average annual growth rate exceeding 15%; ・ Technical services + international trade (5%): light-asset, high-return businesses serving as vital complements to its global footprint. Backed by ultra-low costs and stable profit streams, Saudi Aramco enjoys exceptionally robust cash flow—over $100 billion annually—allowing it to fund multi-billion-dollar investment programs without external financing. Its asset quality is underpinned by the sovereign credit of the Kingdom of Saudi Arabia, leaving it entirely free of debt pressure. IV. Competitive landscape: no peer in the global energy sector—dominant across all sub-sectors Comparing Saudi Aramco with industry leaders such as ExxonMobil, Chevron, and PetroChina reveals stark disparities: other firms achieve only localized competitiveness within specific segments or regional markets, whereas Saudi Aramco holds absolute dominance across all core dimensions—reserves, cost efficiency, profitability, and pricing power—making it the undisputed ‘ceiling’ of the global energy industry. V. Future development: $100-billion investment targeting six high-certainty trends From 2026 to 2030, Saudi Aramco plans to invest over $100 billion under its ‘Three-Year, 85-Project’ initiative, launching a new phase of growth anchored in six clear strategic trends: 1. Natural gas surge: Full-scale operation of the Jafurah gas field—natural gas capacity projected to grow 80% versus 2021 levels, establishing gas as Saudi Arabia’s second pillar of energy; 2. Petrochemical upgrading: Large-scale deployment of COTC technology—doubling crude oil’s added value and positioning Saudi Aramco among the world’s largest petrochemical product suppliers; 3. Digital penetration: Collaboration with NVIDIA to build an industrial AI center—applying AI across the full energy production lifecycle to forge a ‘smart energy empire’; 4. Deepening Asian market presence: Strengthening partnerships with core buyers like China and India, implementing dual strategies of ‘crude exports + local refining’; 5. Infrastructure modernization: The 85 projects span oil & gas production capacity, pipeline networks, and maritime engineering—reinforcing its central role in global energy storage and transportation; 6. Energy diversification: Light-asset investments in solar and wind power—fostering synergy between traditional and new energy sources to advance Saudi Arabia’s Vision 2030.

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