Aramco closes $12.4B infrastructure deal with global investor consortium

US-based EIG Global Energy Partners said on June 18 that a consortium it led had closed a deal to buy 49 percent of Saudi oil producer Aramco’s pipeline business for $12.4 billion, Report informs referring to Reuters.

EIG said that the co-investment process for the deal attracted a global group of investors from China, Saudi Arabia, Korea, the UAE, and the US.

It included Abu Dhabi’s Mubadala Investment Company, Silk Road Fund, Hassana, and Samsung Asset Management, the company said.

As part of the transaction, first announced in April 2021, Aramco Oil Pipelines Company and Aramco entered into a 25-year lease and leaseback agreement for Aramco’s stabilized crude oil pipelines network, according to the company’s website.

Aramco Oil Pipelines Company will receive a tariff payable by Aramco for stabilized crude oil flows, backed by minimum volume commitments.

Aramco continues to hold a 51 percent majority stake in Aramco Oil Pipelines Company 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.