According to informed sources, Saudi Aramco has chosen Citigroup (C.US) to arrange a potential multi-billion-dollar stake sale in its oil export and storage terminal business. The selection followed a competitive bidding process where Citigroup outperformed proposals from several Wall Street investment banks.

This appointment marks a significant breakthrough for Citigroup, whose CEO Jane Fraser has been actively expanding the bank's business with large Middle Eastern corporations and sovereign wealth funds. Historically, Saudi Aramco has relied on JPMorgan (JPM.US) as its sell-side advisor for oil and gas pipeline infrastructure stake sales.

The Saudi oil giant is expected to formally launch the sale process as early as next year, potentially attracting interest from major infrastructure funds. However, discussions remain in preliminary stages, with final details on timing and structure yet to be determined. Citigroup declined to comment, while Saudi Aramco did not immediately respond to requests for comment.

Reports this week indicated that Saudi Aramco is evaluating multiple options, including a stake sale in this business, aiming to raise billions of dollars. The move aligns with the company’s broader asset divestment strategy, which also includes selling real estate holdings.

Despite a 16% decline in global oil prices this year, Aramco has mitigated profit impacts through increased production. However, it has deferred some projects and turned to asset monetization to fund core investments.

Compared to previous pipeline infrastructure stake sales, this proposed transaction is larger in scale and broader in scope, signaling an upgrade in Aramco’s asset optimization strategy. The company’s key oil storage and export hubs include the Ras Tanura port in the Persian Gulf and terminals in the Red Sea. Internationally, Aramco holds stakes in Dutch refined product terminals and leases crude and product storage facilities in Egypt and Okinawa.

Earlier this year, a BlackRock (BLK.US)-led consortium signed an $11 billion leasing agreement with Aramco for facilities supporting its Jubail gas project in Saudi Arabia.