DUBAI (Reuters) – Saudi Aramco is scouting for other potential deals to offer to investors and unlock capital, Chief Executive Amin Nasser said on Monday after the oil giant in June closed a $12.4 billion deal for its crude pipeline network.
“We are looking at the potential for other deals that we are currently in negotiation (about),” Nasser said on a call with analysts.
Aramco had reached out to banks to pitch for an advisory role to help finance the sale of a significant minority stake in its gas pipelines, three sources told Reuters in June. The gas pipeline stake sale will be a “copy paste” of the oil pipeline deal, one of the sources said. Aramco declined comment.
Aramco and other Gulf oil producers are following in the footsteps of Abu Dhabi with plans to raise tens of billions of dollars through the sale of stakes in energy assets, capitalising on a rebound in crude prices to attract foreign investors.
Nasser also told the briefing there were opportunities for the company in the hydrogen market. He said Aramco was looking for offtake agreements with potential buyers before it can expand its output in hydrogen, but added he sees strong potential for growth and exports.
“We are looking to capture a big percentage of that market, we have an advantage,” Nasser told the analysts’ briefing.
An offtake agreement occurs between a producer and a buyer to purchase or sell portions of the producer’s upcoming output.
Countries across Europe and North America are looking at ways to produce emissions-free hydrogen to help reduce carbon emissions and avert global warming.
Abu Dhabi National Oil Co (ADNOC) in partnership with Fertiglobe this month sold its first cargo of blue ammonia to Itochu Corp in Japan, for use in fertiliser production, it said on Aug. 3.
(Reporting by Hadeel Al Sayegh and Saeed Azhar; Editing by Susan Fenton and David Holmes)