Saudi Arabian oil company Aramco is considering the sale of up to five gas-fired power plants in a move that could potentially generate $4bn in revenue.

The initiative forms part of a broader strategy aimed at freeing up capital and enhancing profitability for the state-owned enterprise, as reported by Reuters.

These efforts are aligned with Saudi Arabia's push for Aramco to maximise its profits and increase contributions to government assets.

Aramco has been exploring avenues including asset sales, efficiency improvements and cost reductions.

The company’s anticipated reduction in dividend payments by almost one-third in 2025 comes as lower oil prices impact earnings.

Given that 81.5% of Aramco is directly owned by the state, these dividends, which encompass royalties and taxes, are crucial for government income.

The scope of potential sales extends beyond just power plants; housing compounds and pipelines are also being considered for divestment according to two sources.

Aramco currently owns full or partial stakes in 18 power facilities dedicated towards energising its gas operations and refineries, as stated in its 2024 financial report.

Additional projects such as the Tanajib gas plant are expected, with operational commencement in 2025.

These proposed asset disposals coincide with Crown Prince Mohammed bin Salman's ambitious domestic initiatives to diversify economic reliance away from petroleum amidst fluctuating crude prices' pressures.

Despite accruing a substantial a $199bn windfall from Aramco in 2024, oil revenues constituting 62% of state receipts led to a budget deficit above $30bn in 2024 projections.