Citigroup Secures Mandate for Saudi Aramco Oil Terminal Stake Sale
Citigroup was tapped by Saudi Aramco to arrange the sale of a stake in its oil export and storage terminals as the kingdom reroutes shipments around the closed Strait of Hormuz. It joins Kuwait Petroleum’s bid to lease pipelines for up to $7 billion, highlighting advisory revenue potential despite regional energy attacks.
1. Advisory Mandate Secured
Citigroup was chosen by Saudi Aramco to lead the divestment process for a stake in its oil export and storage terminals business, with the formal sale process set to begin in coming weeks as the kingdom adapts to Strait of Hormuz disruptions.
2. Strategic Context of Aramco Sale
The sale is driven by the near-closure of the Strait of Hormuz, forcing Saudi Aramco to store more crude in terminals, and represents one of the largest advisory mandates in the Gulf energy sector this quarter.
3. Kuwait Petroleum’s Pipeline Lease
Concurrently, Kuwait Petroleum Corp. is working with Centerview to lease part of its pipeline network, aiming to raise up to $7 billion to support an ambitious investment plan despite regional security concerns.
4. Implications for Citigroup’s Advisory Business
These high-profile energy mandates bolster Citigroup’s investment banking backlog, potentially generating substantial advisory fees and reinforcing its presence in Middle East energy transactions during heightened market volatility.