Saudi Aramco ditches Morgan Stanley in gas pipe deal: press
Saudi Aramco has dropped Morgan Stanley as the lead advisor for the sale of a stake in its natural gas pipeline network, Reuters reported on July 12 citing sources.
The Saudi oil giant has instead enlisted JPMorgan and Goldman Sachs to advise on the sale, including with relation to its financing, the news agency said. JPMorgan notably served as a lead arranger for a loan that supported the $12.4bn purchase last month of a 49% stake in Aramco's oil pipeline network by a consortium led by US-based EIG Global Energy Partners.
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Bloomberg reported in June that Morgan Stanley, which also assisted with Aramco's $29.4bn initial public offering in December 2019, had been hired to help with the gas pipeline sale, which is expected to be structured in a similar way to the oil pipeline divestment.
Aramco has promised to pay $75bn in annual dividends despite the sting to its finances from the pandemic-triggered collapse in oil prices last year. Its net income was down 44% last year at $49bn, on weaker prices and lower production.