Aramco agrees $12.4 bln deal to sell stake in pipelines ReutersSaeed Azhar
2 minute read
A view shows branded oil tanks at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov/File Photo
Sells 49% stake in Aramco Oil Pipelines Ltd
Mubadala in talks to join deal
Biggest Aramco deal since record IPO
DUBAI, April 10 (Reuters) - Saudi oil producer Aramco (2222.SE) has agreed a $12.4 billion deal to sell a 49% stake in its pipelines to a consortium led by U.S.-based EIG Global Energy Partners.
Announced late on Friday, it is the company's largest deal since its record $29.4 billion initial public offering in late 2019.
The lease and leaseback agreement includes a 49% stake of newly formed Aramco Oil Pipelines Co and rights to 25 years of tariff payments for oil carried on Aramco's pipelines, it said in a statement.
Aramco will retain a 51% stake in the new company.
EIG, which has invested more than $34 billion in energy and energy infrastructure, was the deal's underwriter and will work with Aramco in the coming days to decide on other parties for the consortium, a source familiar with the deal said.
Abu Dhabi state investor Mubadala is in discussions on being part of it, a spokesman said.
Aramco will retain operational control of the pipeline network and assume all operating and capital expense risk, the companies said. The deal will have no impact on Aramco's oil production.
Aramco will also offer so-called "staple financing" which the buyers can use to back their purchase, sources have told Reuters.
"We will continue to explore opportunities that underpin our strategy of long-term value creation," CEO Amin Nasser said.
Other bidders in the deal process included Apollo Global Management (APO.N) and New York-based Global Infrastructure Partners (GIP).
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.