Saudi state oil giant Aramco is exploring potential asset sales as a strategy to raise funds while pursuing international expansion and managing the impacts of lower crude prices. According to two sources familiar with the situation, the company has engaged investment bankers to propose ideas on how to leverage its assets for financial gain.

As the world’s largest oil-producing company and a critical source of revenue for the Saudi government, Aramco is facing significant challenges. The firm announced it would reduce its dividend payouts by nearly a third this year due to the decline in oil prices affecting its income.

While the specific assets that might be sold have not been disclosed, sources indicate that Aramco is considering asset sales as part of a broader plan to improve efficiency and cut costs. These sources, who requested anonymity due to the sensitivity of the information, did not provide details on which banks are involved in the discussions.

Aramco’s expansive business operations include sectors such as aviation, construction, and sports, and it has historically maintained majority stakes in its asset sales, particularly related to its pipeline infrastructure.

The Saudi government is pressuring industries to enhance profitability amidst lower crude prices and is investing its hydrocarbon revenues into new sectors to decrease reliance on oil. The country is grappling with a widening budget deficit, with the International Monetary Fund estimating that Riyadh requires oil prices above $90 per barrel to balance its budget, while recent prices have hovered around $60 per barrel.

In recent years, Aramco has actively sought to expand its global presence, making significant investments in Chinese refineries, the Chilean fuel retailer Esmax, and the U.S.-based LNG company MidOcean. Last week, the Saudi company announced it had signed 34 preliminary deals with U.S. firms, potentially worth up to $90 billion, following a visit from President Donald Trump to the kingdom.

(Reporting by Yousef Saba, Federico Maccioni in Dubai, David French in New York, editing by Anousha Sakoui, Maha El Dahan, and Louise Heavens)