President of the Comoros Receives Saudi Advisor Qattan    GASTAT: The Kingdom's non-oil merchandise exports increased by 29.4% during Q1 of 2022    Saudi Stock Exchange Main Index Ends Trading Higher at 12,588.89 Points    Saudi Arabia Jumps 10 Places in World Economic Forum's Travel and Tourism Development Index    Comoros Supports Saudi Arabia's Bid to Host World Expo 2030    SR1000 fine, 3 months jail for divulging confidential census data    flynas relaunches loyalty program 'nasmiles' with new incentives    CITC publishes public consultation on 'Network Neutrality Regulations Document'    Saudi Ports Record 24.28% Increase in Cargo Throughput Volumes During April    Red Sea Development Company Adds Three Globally Renowned Hotel Brands to its Luxury Portfolio    LuLu launches biggest mango showcase with 'Kingdom of Mangoes 2022'    Saudi, Syrian arrested after attempting to smuggle drugs    Saudi Ministry of Justice Launches Indicator for Financial Flow of Enforcement Applications on Najiz.sa portal    China Stocks Gain on Economic Support Vows    Human Resources Ministry to employ 18,000 occupational health professionals    942 environmental violations detected since April    Deputy UN chief praises resilience of Bali students in face of disaster threats    North Korea fires missiles hours after Biden leaves Asia    Trump's man trounced in key Georgia primary    Indians are getting fatter – and it's a big problem    Flying reptile: Remains of scary prehistoric creature discovered    Premier League approves Chelsea sale to Boehly consortium    Al-Jadaan: Saudi Arabia will 'ultimately' consider cutting VAT    Prince Fahd lauds remarkable achievements of Tabuk University    Prince Abdulaziz congratulates Al-Shaibani on scaling Mount Everest    Women's green futsal team wins bronze in Gulf Games    KSrelief Participates in High-Level Regional Meeting on Youth    SFDA Warns against Jif Peanut Butter Products    Saudi Press: Saudi Arabia Exerts Exceptional Efforts to Achieve Security and Stability in Yemen    How Syrian singer Rasha Rizk dazzled millennials at Jeddah Season?    Shoura members propose equal blood money for men and women, Muslim and non-Muslim    Ithra Participates in Cannes Film Festival with New Films to Support Saudi Talents    Exclusive launching of Michael Schumacher Digital Experience at Jeddah F1 Grand Prix    Mbappé signs new 3-year PSG deal after rejecting Real Madrid    Saudi Aramco: London Championship to Witness Participation of World's Best Female Golfers    Saudi Arabia Heads to Cannes International Film Festival to Promote Country's Flourishing Industry and Support Emerging Talent on World Stage    President of SAFF Participates in AFC General Assembly Meeting    Saudi Athletes Achieve Great Victories in the 2nd Day of the GCC Games Tournament in Kuwait    Jazan Hosts West Asian Beach Soccer Championship    Bollywood actor's tweet reignited debate over Hindi as India's national language    SFDA Advises to Wash Dates Well Before Eating    SFDA Advises Against Mixing Surplus of Iftar and Suhoor with Different Foods or Surplus from Other Days    Ministry calls on imams to avoid long supplications in Tahajjud Prayer    Nothing wrong with a Muslim celebrating birthdays, says Saudi scholar    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    Pilgrims Perform Dhuhr and Asr Prayers at Arafat Holy Site    Council of Senior Scholars: Muslim Brothers' Group Don't Represent Method of Islam, rather only Follows its Partisan Objectives, Violating our Graceful Religion    Eid Al-Adha Prayer Performed at the Grand Holy Mosque    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Saudi Aramco Signs $12.4 Billion Infrastructure Investment Deal with EIG-Led Consortium
Published in Saudi Press Agency on 10 - 04 - 2021

Saudi Aramco has signed a deal with a consortium led by EIG Global Energy Partners (EIG), one of the world's leading energy infrastructure investors, to optimize its assets through a lease-and-lease-back agreement involving its stabilized crude oil pipeline network.
Upon closing, Saudi Aramco will receive upfront proceeds of around $12.4 billion, further strengthening its balance sheet through one of the largest energy infrastructure deals globally. The transaction represents a continuation of Saudi Aramco's strategy to unlock the potential of its asset base and maximize value for its shareholders. It also reinforces Aramco's role as a catalyst for attracting significant foreign investment into the Kingdom.
As part of the transaction, a newly-formed Saudi Aramco subsidiary, 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 Saudi Aramco for the stabilized crude oil that flows through the network, backed by minimum volume commitments. Saudi Aramco will hold a 51% majority stake in the new company and the EIG-led consortium will hold a 49% stake. Saudi Aramco will continue to retain full ownership and operational control of its stabilized crude oil pipeline network. The transaction will not impose any restrictions on Aramco's actual crude oil production volumes that are subject to production decisions issued by the Kingdom.
Saudi Aramco President & CEO, Amin H. Nasser, said: "This landmark transaction defines the way forward for our portfolio optimization program. We are capitalizing on new opportunities that also align strategically with the Kingdom's recently-launched "Shareek" program to promote private sector investments and attract foreign capital. Saudi Aramco's strong capital structure will be further enhanced with this transaction, which in turn will help maximize returns for our shareholders. Additionally, our long-term partners in this venture will benefit from investment in one of the world's most robust energy infrastructures. Moving forward, we will continue to explore opportunities that underpin our strategy of long-term value creation."
For his part, Saudi Aramco Senior Vice President of Corporate Development, Abdulaziz bin Mohammed Al Gudaimi said: "In addition to strengthening our balance sheet, this deal sets a new benchmark for infrastructure transactions both regionally and internationally. It is a vote of confidence in our long-term outlook by EIG and other heavyweights in the investment world and reflects the significant progress we are making in our portfolio optimization program. This transaction unlocks value from our assets and strengthen Saudi Aramco's resilience, agility and ability to respond to changing market dynamics."
EIG's Chairman & CEO, R. Blair Thomas said that Saudi Aramco's oil pipeline network is a marquee global infrastructure asset. We look forward to investing in this infrastructure which is critical to the global economy, and to driving value for our institutional investors worldwide.
He further said that the long-term investment by EIG and other institutional investors underscores the compelling investment opportunity represented by Saudi Aramco's globally-significant pipeline assets, the Company's long-term outlook and the attractiveness of the Kingdom of Saudi Arabia as a desirable investment destination for international investors. The transaction is expected to close as soon as practicable, subject to customary closing conditions, including any required merger control and related approvals and permits.


Clic here to read the story from its source.