Saudi Aramco is looking to raise at least $17 billion from the sale of a stake in a gas pipeline in a deal similar to an oil pipeline network, sources told Reuters.
Last June, Saudi Aramco and an international consortium of investors comprising EIG and Mubadala Investment Company announced the completion of the consortium’s acquisition of a 49% stake in Aramco Crude Oil Supply Company, a recently established subsidiary of Saudi Aramco, for 12.4 billion. dollar.
The consortium includes a wide range of investors from North America, Asia and the Middle East. This long-term investment by the consortium underscores the investment opportunity offered by Saudi Aramco’s globally important pipelines, the company’s strong long-term aspirations, and the Kingdom’s being an attractive and desirable destination for institutional investors.
As part of the deal, announced in April 2021, Aramco Crude Oil Supply Company and Saudi Aramco entered into a 25-year lease-and-leaseback agreement for Saudi Aramco’s crude oil pipeline network.
In return, the Aramco Crude Oil Supply Company, in turn, will receive a tariff paid by Saudi Aramco for the quantities of crude oil that flow through the network, and this tariff is linked to a minimum size of those quantities. Saudi Aramco will retain a majority stake of 51% in the new company.
Saudi Aramco will retain full ownership of the pipeline network with full operational control over it, and this transaction will not impose any restrictions on the company in terms of the actual production of crude oil, which is subject to production decisions made by the Kingdom of Saudi Arabia.
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