Moelis Gets Mandate with Saudi Aramco on Selling Stakes in Units
Posted on 12/10/2020
Saudi Aramco (Saudi Arabian Oil Company) is the world’s biggest oil company and has been negatively hurt by a long-term slump in oil prices exacerbated by the COVID-19 lockdowns (kills global oil demand). Saudi Aramco hired Moelis & Co. to formulate a strategy for selling stakes in some subsidiaries. The plan includes raising around US$ 10 billion from a stake sale in Aramco’s pipelines. Ken Moelis has a nickname in the Arab region as “Ken of Arabia”. Despite massive recent drops in profits, Saudi Aramco remains the crown jewel for the country as the oil giant is keen on paying its massive “guaranteed” dividend payments.
Moelis has a track record and has worked with Abu National Oil Company (ADNOC) to raise more than US$ 15 billion this year from big name investors such as Apollo Global Management Inc., Brookfield Asset Management Inc., and Singapore’s GIC Private Limited.
On another note, Saudi Aramco and Houston-based Baker Hughes Company have formed a 50:50 joint venture called Novel. Novel plans to develop a broad range of non-metallic products for multiple applications in the energy sector. Novel’s new plant is being constructed at Saudi Arabia’s King Salman Energy Park.