Saudi Aramco picks JPMorgan, Goldman Sachs to advise on gas pipeline deal: report

Logo of Saudi Aramco

Saudi Arabian Oil Co. (Saudi Aramco) picked JPMorgan Chase & Co. and Goldman Sachs to advise on the planned sale of a multibillion-dollar stake in its natural gas pipeline network, Bloomberg reported, citing sources familiar with the matter.

Saudi Aramco is preparing to gauge interest in the assets from potential investors and could kick off the process soon, the sources said. It is likely to attract bids from infrastructure-focused funds, they added.

No final decisions were made, and details of the potential gas pipeline transaction could still change, the sources said.

In June, Reuters reported that Saudi Aramco invited banks to pitch for an advisory role to help finance the sale of a significant minority stake in its gas pipelines, according to data available with Argaam.

The oil giant was said to have already hired Morgan Stanley as a merger and acquisition (M&A) advisor.

The gas pipeline stake sale will be a “copy paste” of the oil pipeline deal, Reuters had reported, citing sources.

Earlier, Saudi Aramco and an international investor consortium, including EIG and Mubadala, successfully closed the share sale and purchase agreement, in which the consortium acquired a 49% stake in Aramco Oil Pipelines Co. for $12.4 billion.

As part of the transaction, a newly-formed Saudi Aramco subsidiary, Aramco Oil Pipelines Company, will lease usage rights in Aramco’s stabilized crude oil pipelines network for a 25-year period.