Saudi Aramco is reportedly lining up a loan of about $7.5 billion for potential investors in its oil pipelines, according to people familiar with the matter. The world’s biggest oil producer has begun talks with lenders to secure favourable terms for the funding package that would then be offered to investors, the people said, asking not to be identified as the information is private. The discussions are occurring in parallel with the sale of a stake in a pipeline unit, which could raise about $10 billion for Aramco, the people said. A pipeline deal would be the first phase of Aramco’s strategy to raise money by selling leasing rights or stakes in non-core assets, mirroring what Abu Dhabi National Oil Company (Adnoc) has done in the past few years. The Saudi company is working with advisers including JPMorgan Chase & Co. and Moelis & Co., the Wall Street investment bank that’s also involved in the Adnoc deals. Non-conventional gas find will be 'welcome addition' to the kingdom's assets as it looks to boost its use of natural gas for domestic power generation Aramco declined to comment. Adnoc, which pumps most of the oil and gas in the United Arab Emirates, has generated more than...read more...
SectorOil & Gas