Aramco Completes Share Sale Agreement Worth $12.4b

Aramco Completes Share Sale Agreement Worth $12.4b
Haradh, SAUDI ARABIA: A general view shows a new plant inaugurated 22 March 2006 in Haradh, about 280 kms (170 miles) southwest of the eastern Saudi oil city of Dhahran, launching a project adding 300,000 barrels of oil to the kingdom’s daily production capacity. The facility which was opened today in a ceremony attended by Saudi Oil Minister Ali al-Nuaimi was completed in January, ahead of schedule, the company said. Approximately 160 kms (100 miles) of new pipeline and extensions will transport crude and gas products to processing facilities further north in the Eastern Province, a statement said. Saudi Arabia, the world’s top crude producer and exporter, currently pumps around 9.5 million bpd of oil and has a production capacity of around 11 million bpd. AFP PHOTO/STR (Photo credit should read -/AFP/Getty Images)

Aramco has announced the completion of a share sale and purchase agreement (SP) with consortium, including EIG and Mubadala, who acquired a stake of 49% in Aramco Oil Pipelines company, a subsidiary of Aramco, for $12.4 billion, a press release stated.

According to the statement, the consortium consists of a broad cross-section of investors from North America, Asia and the Middle East. This transaction reflects the compelling investment opportunity presented by Aramco’s globally-significant pipeline assets, the company’s robust long-term outlook, and the attractiveness of the Kingdom of Saudi Arabia to international investors.

Amin H.Nasser, Aramco President & CEO, expressed his pleasure with this transaction saying “The interest we have received from investors shows strong confidence in our operations and the long-term outlook for our business. It is a significant milestone that reflects the value of our assets and paves the way forward for our portfolio optimization strategy. We plan to continue to explore opportunities to capitalize on our industry-leading capabilities and attract the right type of investment to Saudi Arabia.”

Aramco announced in April, that it has signed an agreement with a consortium led by EIG to sale a stake of 49% of its subsidiary Aramco Oil Pipelines.

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