Aramco signed infrastructure investment agreement with a consortium led by EIG Global Energy Partners (EIG) through a lease-and-lease-back agreement involving Aramco’s stabilized crude oil pipeline network with about $12.4 billion, according to Aramco’s press release.
Amin H. Nasser, Aramco President & CEO, stated: “This landmark transaction defines the way forward for our portfolio optimization program. We are capitalizing on new opportunities that also align strategically with the Kingdom’s recently-launched Shareek program.”
As part of the agreement, Aramco’s subsidiary, Aramco Oil Pipelines Company, will lease usage rights in Aramco’s stabilized crude oil pipelines network for a 25-year period. Aramco Oil Pipelines Company will acquire a tariff payments for oil transported through Aramco’s crude oil pipeline network, backed by minimum volume commitments.
Aramco will own a 51% majority stake in the new company, while the EIG-led consortium will own the remaining 49% stake. Aramco will retain complete ownership and operational control of its stabilized crude oil pipeline network.
Additionally, Abdulaziz M. Al Gudaimi, Aramco Senior Vice President of Corporate Development, said: “In addition to strengthening our balance sheet, this deal sets a new benchmark for infrastructure transactions both regionally and internationally.”
For his part, R. Blair Thomas, EIG’s Chairman & CEO, mentioned: “We are honored to partner with Aramco, an undisputed industry leader, on this landmark transaction. Aramco’s oil pipeline network is a marquee global infrastructure asset.”