Saudi Aramco, along with an international coalition of investors that includes "EIG" and Mubadala Investment Company, announced the completion of the coalition's acquisition of a 49% stake in "Aramco Oil Pipelines Company," a recently established subsidiary of Saudi Aramco, for $12.4 billion, according to a statement published on the company's website. The Chinese Silk Road Fund and "Husana Investment," which is controlled by the Saudi government, joined the group of investors in the oil pipeline operations of Saudi Aramco, according to Bloomberg.
The President and CEO of Saudi Aramco, Amin H. Nasser, stated in a press release yesterday, "This deal reflects the significant value of our assets and represents one of the most historical moments in Saudi Aramco's journey to develop its business portfolio, investment projects, and achieve growth opportunities."
Robert Blair Thomas, CEO of "EIG," described the deal as "the most prominent infrastructure deal globally."
**Details of the Deal**
As part of the deal announced last April, the newly established Aramco Oil Pipelines Company entered into a 25-year lease and leaseback agreement for the network of crude oil pipelines owned by Saudi Aramco. In return, Aramco Oil Pipelines will receive a fee from Saudi Aramco for the volumes of crude oil that flow through the network, with that fee linked 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. Additionally, this deal will impose no restrictions on the company regarding actual crude oil production volumes, which are subject to production decisions made by the Kingdom of Saudi Arabia.
