Saudi Aramco has announced the completion of a $12.4 billion sale in its natural gas pipeline to an international investor consortium.
The consortium consists of a broad cross-section of investors from North America, Asia and the Middle East, in which it acquired a 49-percent stake in Aramco Oil Pipelines Co, the Saudi Press Agency (SPA) reported on Saturday
As part of the transaction, first announced in April 2021, Aramco and its subsidiary entered into a 25-year leaseback agreement for the oil giant’s stabilised crude oil pipelines network, Xinhua news agency quoted the SPA as saying.
Aramco Oil Pipelines Co. will receive a tariff payable by Aramco for stabilised crude oil flows, backed by minimum volume commitments.
Aramco President & CEO, Amin H. Nasser, said: “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. It is a significant milestone that reflects the value of our assets and paves the way forward for our portfolio optimization strategy. We plan to continue to explore opportunities to capitalize on our industry-leading capabilities and attract the right type of investment to Saudi Arabia.”
Abdulaziz M. Al Gudaimi, Aramco Senior Vice President of Corporate Development, said: “The interest we received for this deal is evidence of continued confidence in our Company from institutional investors and sets a new benchmark for infrastructure transactions globally. This transaction utilizes our world-class pipeline infrastructure to create additional value for our shareholders, reinforcing our Company’s resilience and ability to adapt in a rapidly changing business environment.”