Saudi Aramco has chosen JPMorgan Chase and Goldman Sachs Group to advise on the planned sale of a multibillion-dollar stake in its natural gas pipeline network. Energy giant is preparing to gauge interest in the assets from potential investors and could kick off the process soon. Aramco was planning to hire Morgan Stanley for the transaction. It could not immediately be learned why Morgan Stanley was not formally appointed in the end. Bankers sometimes do early preparatory work for companies before they are officially hired on a deal, and advisers can change due to disagreements over terms of a mandate. It completed the sale of a $12bn stake in its oil pipeline network to a group of investors led by US firm EIG Global Energy Partners. Sovereign fund Mubadala Investment, Samsung Asset Management, China’s Silk Road Fund and Saudi government backed Hassana Investment also joined the purchase.
The world’s largest oil company is planning to raise tens of billions of dollars by selling more stakes in its businesses as it seeks to raise funds for future growth projects. Aramco is conducting a strategic review of its upstream business and could consider selling stakes in the operations at certain fields or forming partnerships to develop new resources. No final decisions have been made, and details of the potential gas pipeline transaction could still change, the people said. Representatives for Aramco, Goldman Sachs, JPMorgan and Morgan Stanley declined to comment. Aramco’s Master Gas System is a network of pipelines connecting its production with processing sites throughout the kingdom.