An international investor consortium, including Washington based energy sector investor EIG and UAE soverign wealth fund Mubadala Investment Co., has acquired a 49% stake in Aramco Oil Pipelines Co., a unit of Saudi Aramco, the national oil company of Saudi Arabia, 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 underscores the compelling investment opportunity presented by Aramco’s globally significant pipeline assets,” the company said.
As part of the transaction, first announced in April 2021, Aramco Oil Pipelines and Aramco entered into a 25-year lease and leaseback agreement for Aramco’s stabilized crude oil pipelines network.
“It is a significant milestone that reflects the value of our assets and paves the way forward for our portfolio optimization strategy. We plan to continue to explore opportunities to capitalize on our industry-leading capabilities and attract the right type of investment to Saudi Arabia,” said Amin H. Nasser, president and CEO, Aramco.
Aramco Oil Pipelines will receive a tariff payable by Aramco for stabilized crude oil flows, backed by minimum volume commitments.
Aramco continues to hold a 51% majority stake in Aramco Oil Pipelines and retains full ownership and operational control of its stabilized crude oil pipeline network.
The transaction does not impose any 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 marquee infrastructure transaction globally and we are pleased to see that so many leading international investors agree with us,” said R. Blair Thomas, EIG’s chairman and CEO.
