Arab News, Saturday, Apr 10, 2021 | Shaaban 27, 1442
Aramco agrees $12.4 billion pipeline deal with EIG
Saudi Arabia:
Aramco has agreed a $12.4 billion leaseback deal with a consortium led by EIG
Global Energy Partners in one of the biggest energy infrastructure transactions.
It represents a continuation of Aramco’s strategy to unlock the potential of its
asset base and maximize value for its shareholders, it said in a statement.
A newly-formed unit called Aramco Oil Pipelines Company will lease usage rights
in Aramco’s stabilized crude oil pipelines network for a 25-year period.
In return, Aramco Oil Pipelines Company will receive a tariff payable by Aramco
for the stabilized crude oil that flows through the network, backed by minimum
volume commitments.
Aramco will hold a 51 percent majority stake in the new company and the EIG-led
consortium will hold a 49 percent stake.
The Saudi oil giant said it would retain full ownership and operational control
of its stabilized crude oil pipeline network and that the transaction would not
impose any restrictions on Aramco’s actual crude oil production volumes.
“This landmark transaction defines the way forward for our portfolio
optimization program,” said Aramco President Amin Nasser. “We are capitalizing
on new opportunities that also align strategically with the Kingdom’s
recently-launched Shareek program. Aramco’s strong capital structure will be
further enhanced with this transaction, which in turn will help maximize returns
for our shareholders.”