Saudi Aramco signs $12.4 bln infrastructure investment deal with EIG-led consortium

Logo of "Saudi Aramco"

Saudi Aramco signed a deal with a consortium led by EIG Global Energy Partners (EIG), one of the world’s leading energy infrastructure investors, to optimize its assets through a lease-and-lease-back agreement involving its stabilized crude oil pipeline network.

Saudi Aramco will receive upfront proceeds of around $12.4 billion upon closing, further strengthening its balance sheet through one of the largest energy infrastructure deals globally, the company said in a statement received by Argaam.   

The transaction represents a continuation of Aramco’s strategy to unlock the potential of its asset base and maximize 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 stabilized crude oil pipelines network for a 25-year period.

In return, Aramco Oil Pipelines Co. will receive a tariff payable by Aramco for the stabilized 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.  

The world’s largest oil exporter will also continue to retain full ownership and operational control of its stabilized 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. 

“This landmark transaction defines the way forward for our portfolio optimization program,” Aramco President & CEO, Amin Nasser, said.  

“Additionally, our long-term partners in this venture will benefit from investment in one of the world’s most robust energy infrastructures. Moving forward, we will continue to explore opportunities that underpin our strategy of long-term value creation,” Nasser added.