Saudi Aramco and an international consortium of investors, including EIG and Mubadala Investment Company, announced the completion of the consortium's acquisition of a 49% stake in Aramco's crude oil supply company, a recently established subsidiary of Saudi Aramco, for $12.4 billion. The consortium, according to a statement received by "Al Arabiya.net", includes a diverse group of investors from North America, Asia, and the Middle East. This long-term investment by the consortium underscores the investment opportunity presented by Saudi Aramco's globally significant pipelines and the company's strong long-term outlook, alongside the Kingdom being an attractive and desirable destination for institutional investors.
As part of the deal, announced in April 2021, the Aramco crude oil supply company and Saudi Aramco entered into a 25-year lease and leaseback agreement for Saudi Aramco's crude oil pipeline network. In return, the Aramco crude oil supply company will receive fees from Saudi Aramco based on the volumes of crude oil flowing through the network, with those fees being tied to a minimum volume threshold. Saudi Aramco will retain a 51% majority stake in the new company.
Saudi Aramco will maintain full ownership of the pipeline network with complete operational control, and this deal will not impose any restrictions on the actual crude oil production quantities, which are subject to production decisions made by Saudi Arabia.
The President and CEO of Saudi Aramco, Amin H. Nasser, stated, "The interest we have received from investors is a testament to the strong confidence in our business and its sustainability in the long run and the positive outlook for its future prospects. This deal reflects the significant value of our assets and represents one of the most important historical moments in Saudi Aramco's journey to develop its business portfolio, investment projects, and achieve growth opportunities. We will continue, with God's help, our plans to explore opportunities to leverage our leading capabilities in the energy sector and attract the most suitable types of investments to the Kingdom that strategically align with the Partnership Program initiative."
Meanwhile, the Senior Vice President of Corporate Development at Saudi Aramco, Abdulaziz M. Al-Qudaimi, said, "This deal will leverage Saudi Aramco's high-level pipeline infrastructure to achieve added value and enhance shareholder returns, thereby strengthening our company's resilience and ability to adapt amid market changes."
