To add quotes and details

Dubai, June 17 - Saudi Aramco is considering selling a stake in its sulfur business as part of its ongoing strategy to monetize its infrastructure assets to raise tens of billions of dollars, three sources familiar with the matter told Reuters.

Aramco, the crown jewel of the world's largest crude oil exporter, is seeking foreign capital to finance the kingdom's ambitious diversification plan amid mounting financial pressures. Reuters exclusively reported last year that the oil giant was actively pursuing asset sales, efficiency improvements, and cost reductions.

According to one source and Reuters' calculations, the total value of Aramco's massive infrastructure assets, which it could use to raise funds, could reach around $50 billion.

Sources said Aramco invited banks last month to submit bids for the sulfur deal, known internally as the Yellowstone project, and one source added that it could generate up to $7 billion.

Aramco, the world's largest energy company, declined to comment.

Sulfur is a byproduct extracted when hydrogen sulfide is removed from raw gas to make it suitable for export. Aramco sells sulfur through its trading arm and describes itself on its website as one of the largest exporters of sulfur from the Gulf and Red Sea region.

Three sources indicated that the assets offered for sale are centered around sulfur storage and export terminals. One of them added that Aramco is still reviewing which assets will be included in the deal, and it will not be launched before next year.

Other assets for sale

The government, its sovereign wealth fund, and affiliated entities own more than 97 percent of Aramco’s shares, which is the kingdom’s largest single source of income through dividends and returns.

The company aspires to become a major player in the global natural gas sector, and its ambitious $100 billion Jafurah project is at the heart of its plans. Last year, it signed an $11 billion lease-leaseback agreement for Jafurah's gas processing facilities with a consortium led by BlackRock's Global Infrastructure Partners.

Two sources indicated that Aramco is also considering a deal involving its oil export terminals, with one source valuing the assets at up to $25 billion. The source added that the company is waiting for regional tensions to subside before proceeding, likely in the second half of the year.

One of the three sources and a fourth source indicated that Aramco’s real estate portfolio is also under review, including the complex that houses its headquarters, noting that it is valued at around $10 billion.

Two sources said the company may raise approximately $500 million from water infrastructure assets linked to its crude oil operations, codenamed "Project Hydro." The sources indicated that water and wastewater infrastructure company Miyahuna and UAE-based Metito are among those interested in the deal.

Matito declined to comment on Aramco's assets but confirmed that it regularly assesses opportunities in its markets. Miyahuna did not immediately respond to a request for comment.

The four sources spoke on condition of anonymity due to the confidentiality of the talks.

Reuters previously reported that Aramco is working to sell gas-fired power plants worth at least four billion dollars.