Oil & Gas

A group led by U.S. asset manager BlackRock is reportedly in talks to invest around $10 billion in infrastructure tied to Saudi Aramco’s $100 billion Jafurah shale gas project. The investment would include a stake in pipelines and gas-fired power plants, forming part of Aramco’s strategy to monetize infrastructure assets amid declining oil revenues. The deal is expected to follow a “lease and lease-back” model, similar to previous agreements Aramco struck in 2021, where investors earned tariffs while Aramco retained operational control.

The Jafurah project is a cornerstone of Aramco’s ambition to become a major global player in natural gas, aiming to boost its gas output by 60% by 2030 from 2021 levels. If completed, it would be the largest shale gas development outside the United States. Despite falling oil prices, Aramco has indicated it will continue investing aggressively in gas and infrastructure expansion to diversify its energy portfolio.

Saudi Aramco’s earnings have taken a hit due to softening oil prices, a trend worsened by OPEC+ decisions to increase production. In response, the company has slashed its 2025 dividend payout by over $40 billion but remains committed to long-term growth, particularly in gas and power. It is reportedly also exploring revenue-backed funding for five gas-fired power plants.

BlackRock’s participation underscores growing international interest in Saudi energy infrastructure, especially from U.S. firms. This follows former President Trump’s high-profile visit to Saudi Arabia, which signaled stronger U.S.-Saudi economic ties. If finalized, the deal would mark another significant step in Aramco’s ongoing shift from oil dominance toward a more diversified energy future.