Aramco may open $110-bn gas project to foreign investors

Saudi Aramco is considering a bold move to open up one of the world’s largest unconventional gas fields to foreign investors, as it looks to fund a $110-billion project to help it diversify from oil sales, people familiar with the matter said.

The state-controlled producer is working with an adviser as it explores raising new equity or debt for its vast Jafurah site, the people said, asking not to be identified because the information is private. It has started preliminary talks with potential investors including large commodity traders, the sources said.

Deliberations are in the early stages and Aramco could decide to pursue other ways of gathering money to fund the Jafurah development, the people said. A representative for Aramco declined to comment.

Any deal involving Jafurah would mark a rare example of Aramco allowing external investors the chance to hold stakes in its upstream oil and gas assets. Previous attempts in the late 1990s to bring in Big Oil firms to help develop reserves failed. The firm began a review of its upstream business earlier this year as a precursor to such a potential move.

Saudi Arabia’s gas reserves are the largest in the Arab world after Qatar, according to BP. The Jafurah field is a priority for the kingdom’s rulers as they look to reduce a reliance on crude exports.