Aramco agrees to $12.4 billion pipeline deal with EIG
RIYADH: 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.”
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