DUBAI: Saudi oil producer Aramco has reached a $ 12.4 billion deal to sell a 49% stake in its pipelines to a consortium led by US-based EIG Global Energy Partners.
Announced on Friday evening (April 9), it is the company’s biggest deal since its record US $ 29.4 billion IPO at the end of 2019.
The lease agreement includes a 49% stake in the newly formed Aramco Oil Pipelines Co and rights to 25 years of tariff payments for oil carried on Aramco pipelines, it said in a statement.
Aramco will retain a 51% stake in the new company.
EIG, which has invested more than $ 34 billion in energy and power infrastructure, was the underwriter of the deal and will work with Aramco in the coming days to decide on other parties for the consortium, a source close to the consortium said. agreement.
Abu Dhabi state investor Mubadala is in talks to be a part of it, a spokesperson said.
Aramco will retain operational control of the pipeline system and assume all operational and capital expenditure risks, the companies said. The agreement will have no impact on Aramco’s oil production.
Aramco will also offer “core financing” that buyers can use to support their purchase, sources told Reuters.
“We will continue to explore the opportunities that underpin our long-term value creation strategy,” said CEO Amin Nasser.
Other bidders in the transaction process included Apollo Global Management and Global Infrastructure Partners (GIP), based in New York.
U.S. asset manager BlackRock and Canadian firm Brookfield Asset Management Inc withdrew from the auction, Reuters reported on April 6, citing sources familiar with the deal.
Abu Dhabi’s National Oil Co (ADNOC) has signed similar deals over the past two years, raising billions of dollars through sale-leaseback deals related to its oil and gas pipelines.