Saudi Aramco's $12.4 billion Pipeline Deal

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Saudi Aramco's $12.4 billion Pipeline Deal

Tue, 06/22/2021 - 11:31
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Logo of Saudi Aramco (copyright by Shutterstock/Hyserb)
Logo of Saudi Aramco (copyright by Shutterstock/Hyserb)

EIG Global Energy Partners LLC from the United States is leading an international consortium including China's Silk Road Fund, UAE'S Mubadala Investment Co, Samsung Asset Management and the the Hassana Investment Co to invest $12.4 billion in Saudi Aramco's oil pipelines in return for a 49% equity stake.  

The subsidiary will have rights to 25 years of tariff payments for oil transported through Aramco’s crude pipeline network. Aramco, the world's biggest oil producer, will retain ownership of the remaining 51 percent of the shares.

Announced late on Friday, it is the company's largest deal since its record $29.4 billion initial public offering in late 2019.

Aramco may use the same approach to raise money for its natural gas pipelines, part of a plan to sell non-core assets.  The funds would help the company maintain a $75 billion annual dividend, almost all of which goes to the government.

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