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  • Global consortium completes $12.4bn stake sale in Aramco unit

Global consortium completes $12.4bn stake sale in Aramco unit

Aramco retains a 51-percent majority stake in the subsidiary. (File/Reuters)
Aramco retains a 51-percent majority stake in the subsidiary. (File/Reuters)
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20 Jun 2021 12:06:48 GMT9
20 Jun 2021 12:06:48 GMT9

Arab News

  • It is part of the company’s long-term strategy to maximize its profit by optimizing its portfolio as Saudi Arabia seeks to diversify its income sources

DUBAI: Saudi Aramco has completed a $12.4 billion stake sale in its natural gas pipeline network to a global consortium that includes US-based EIG and Abu Dhabi’s Mubadala.

The international consortium, which consists of broad cross-section investors from North America, Asia and the Middle East, acquired 48 percent of the Aramco Oil Pipelines Co.

It is part of the company’s long-term strategy to maximize its profit by optimizing its portfolio as Saudi Arabia seeks to diversify its income sources.

“We are pleased to conclude this transaction with the global consortium. The interest we have received from investors shows strong confidence in our operations and the long-term outlook for our business,” Aramco President Amin Nasser said.

“We plan to continue to explore opportunities to capitalize on our industry-leading capabilities and attract the right type of investment to Saudi Arabia,” he added.

As part of the transaction, Aramco and its subsidiary entered into a 25-year leaseback agreement for the company’s stabilized crude oil pipeline network.

In return, Aramco Oil Pipelines Co. will receive a tariff payable by Aramco for stabilized crude oil that flows through the network.

Aramco retains a 51-percent majority stake in the subsidiary, and the transaction does not impose any restrictions on Aramco’s crude oil production volumes.

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