Saudi Aramco signs $ 12.4 billion infra deal with global consortium
Mumbai: A consortium of international investors, including Washington-based energy sector investor EIG and UAE sovereign wealth fund Mubadala Investment Co., has acquired a 49% stake in Aramco Oil Pipelines Co., a unit of Saudi Aramco, Saudi Arabia’s national oil company, for $ 12.4 billion, the company said today.
“The consortium consists of a broad cross-section of investors from North America, Asia and the Middle East. This long-term investment by the consortium underlines the attractive investment opportunity presented by the pipeline assets of ‘Aramco of global significance,’ the company said.
As part of the transaction, first announced in April 2021, Aramco Oil Pipelines and Aramco have entered into a 25-year lease for Aramco’s stabilized pipeline system.
“This is an important milestone that reflects the value of our assets and paves the way for our portfolio optimization strategy. We plan to continue to explore opportunities to capitalize on our advanced capabilities and attract the right kind of investment to Saudi Arabia, ”said Amin H. Nasser, President and CEO of Aramco.
Aramco Oil Pipelines will receive a tariff payable by Aramco for stabilized crude oil flows, supported by minimum volume commitments.
Aramco continues to hold a controlling 51% interest in Aramco Oil Pipelines and retains full ownership and operational control of its stabilized crude oil pipeline system.
The transaction places no restrictions on Aramco’s actual crude oil production volumes, which are subject to production decisions made by the Kingdom of Saudi Arabia.
“We believe this is the world’s premier infrastructure transaction and we are delighted to see so many leading international investors agree with us,” said R. Blair Thomas, Chairman and CEO of GIE.
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