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 optimise its assets through a lease-and-lease-back agreement involving its stabilised crude oil pipeline network.
On closing, Aramco will receive upfront proceeds of around US$12.4bn (£9.02bn) further strengthening its balance sheet through one of the largest energy infrastructure deals globally. The transaction represents a continuation of Aramco’s strategy to unlock the potential of its asset base and maximise value for its shareholders.
As part of the transaction, a newly-formed Aramco subsidiary, Aramco Oil Pipelines Company, will lease usage rights in Aramco’s stabilised crude oil pipelines network for a 25-year period. In return, Aramco Oil Pipelines Company will receive a tariff payable by Aramco for the stabilised crude oil that flows through the network, backed by minimum volume commitments.
Aramco will hold a 51% majority stake in the new company and the EIG-led consortium will hold a 49% stake. Aramco will continue to retain full ownership and operational control of its stabilised 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.