Saudi Aramco, the world’s largest oil company, is considering as much as $5 billion of investments in renewable energy firms as part of plans to diversify from crude production, according to people with knowledge of the matter.
Banks including HSBC Holdings Plc, JPMorgan Chase & Co. and Credit Suisse Group AG have been invited to pitch for a role helping Aramco identify potential acquisition targets and advising on deals, the people said, asking not to be identified as the information is private, Bloomberg reported.
The energy company wants to bring foreign expertise in renewable energy into the kingdom, the people said, adding that the first investments under the plan could occur this year.
Saudi Arabia wants to produce 10 gigawatts of power from renewable energy sources including solar, wind and nuclear by 2023 and transform Aramco into a diversified energy company.
The kingdom also plans to develop a renewable energy research and manufacturing industry as part of an economic transformation plan announced by Deputy Crown Prince Mohammed bin Salman in April.
Saudi Aramco and HSBC declined to comment while JPMorgan and Credit Suisse did not immediately return calls for comment.
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