Saudi Aramco eyes selling stake in oil pipelines for over $10B

Saudi Arabia’s energy giant is in advanced talks to sell up to a 49 percent stake in its oil pipelines to a consortium of US, Chinese and local investors for between $10 billion and $15 billion, Report informs referring to The Wall Street Journal.

Saudi Arabian Oil Co., known as Aramco, is in talks to sell the minority stake to a group of investors that could include US buyout giant Apollo Global Management Inc., APO 0.25 percent energy investment firm EIG Global Energy Partners, Chinese infrastructure fund Silk Road Fund, and China Reform Fund Management Co., a Chinese private-equity fund, along with Saudi pension funds.

“By holding on to a majority stake in the pipeline business, Saudi Arabia assures it remains in operational control of the assets. A deal would set up a joint venture between Aramco and any winning bidder, according to people familiar with the matter. That joint venture would receive proceeds from Aramco for transporting oil along the pipelines. Details of the revenue-sharing agreement under any deal couldn’t be learned,” reads the article.

Under any agreement, Aramco is aiming to sell the minority stake for between $10 billion and $15 billion in a deal that could value Aramco’s network of oil pipelines at more than $20 billion. A deal could be announced as soon as this week.