The world’s largest oil company, Saudi Aramco sold a 49% stake in the gas pipeline business to an international investor consortium led by BlackRock.
The consortium also includes Saudi Hassana Investment, Singapore’s Keppel Infrastructure Trust and China Merchants Capital with China’s Silk Road Fund. Aramco is getting rid of its 49% stake in the Gas Pipelines project. Experts estimate the deal at $15.5 billion.
“This agreement is our second landmark infrastructure deal in less than a year and another significant step forward in our long-term value creation strategy. The participation of the consortium led by BlackRock and Hassana highlights the appeal of the Aramco portfolio to the world’s leading investors as the Saudi economy transforms, requiring robust energy infrastructure and networks to meet the needs of an expanding industrial sector.” the company’s president Amin Nasser said.
According to the deal, the subsidiary will now receive the rights to operate the Saudi Aramco gas pipeline network. After that, the parent structure leases assets from the subsidiary for 20 years and will pay a specific tariff for the fuel transported along the highways.
Additionally, Aramco will retain the ownership and operational control of the infrastructure.
A similar agreement was previously signed by Saudi Aramco with a consortium in which the US company EIG Global Energy Partners played a key role.
Saudi Arabia’s Sovereign Investment Fund recently received 4% of the securities of the state oil enterprise. According to Crown Prince Mohammed bin Salman Al Saud, this was done to strengthen the position of the fund.
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