Saudi Aramco strikes 12.4-billion-dollar deal with US-based EIG

Saudi Aramco strikes 12.4-billion-dollar deal with US-based EIG

RIYADH – Energy giant Saudi Aramco said it has struck a 12.4-billion-dollar deal to sell a minority stake in a newly formed oil pipeline business to a consortium led by US-based EIG Global Energy Partners.

The deal underscores how Aramco seeks to monetise its once-untouchable assets to generate revenue for the Saudi government as it accelerates efforts to diversify the oil-reliant economy.

“Upon closing, 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 company said in a statement late Friday.

“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.”

The EIG-led consortium will hold a 49 percent stake in the subsidiary, Aramco said, adding that it will retain “full ownership and operational control.”

In a separate statement, EIG, a Washington-based energy investment firm, said the new venture is valued at approximately $25.3 billion.

The deal covers all of Aramco's “existing and future stabilised crude pipelines” in the kingdom, an elaborate network that connects oil fields to downstream facilities, EIG said.

“We are proud to partner with Aramco in this marquee global infrastructure asset,”