Saudi Aramco hires Morgan Stanley to advise on gas pipeline stake sale: report

Logo of Saudi Aramco

Saudi Aramco hired Morgan Stanley as the lead adviser to review a potential multibillion-dollar stake sale in its natural gas pipeline network, Bloomberg reported, citing unnamed sources with knowledge of the matter.

The world’s largest oil producer has not yet started a formal process and could add more banks to work on the deal, the sources said.

The percentage of the stake up for sale is under discussion. Moreover, talks are at an early stage and there is no certainty the company will proceed with a transaction.

Last April, Saudi Aramco signed a deal with a consortium led by EIG Global Energy Partners (EIG), one of the world’s leading energy infrastructure investors, to optimize its assets through a lease-and-lease-back agreement involving its stabilized crude oil pipeline network, Argaam reported.

It will receive upfront proceeds of around $12.4 billion upon closing, further strengthening its balance sheet through one of the largest energy infrastructure deals globally.