Saudi’s Aramco signs infra investment deal of $12.4b

Saudi’s Aramco signs infra investment deal of $12.4b

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. 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 transaction represents a continuation of Aramco's strategy to unlock the potential of its asset base and maximise value for its shareholders. It also reinforces Aramco's role as a catalyst for attracting significant foreign investment into the Kingdom. 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 percent majority stake in the new company and the EIG-led consortium will hold a 49 percent stake. Aramco will continue to retain full ownership and operational control of its stabilised crude oil pipeline network. The transaction will not impose