This landmark transaction defines the way forward for our portfolio optimisation programme, according to CEO Amin H. Nasser.
Upon closing, Aramco will receive upfront proceeds of around US$12.4 billion, further strengthening its balance sheet through one of the largest energy infrastructure deals globally. The transaction represents a continuation of Aramco’s strategy to unlock the potential of its asset base and maximise value for its shareholders. It also reinforces Aramco’s role as a catalyst for attracting significant foreign investment into the Kingdom.
As part of the transaction, a newly-formed Aramco subsidiary, Aramco Oil Pipelines Company, will lease usage rights in Aramco’s stabilised crude oil pipelines network for a 25-year period. In return, Aramco Oil Pipelines Company will receive a tariff payable by Aramco for the stabilised crude oil that flows through the network, backed by minimum volume commitments. Aramco will hold a 51 per cent majority stake in the new company and the EIG-led consortium will hold a 49 per cent stake. Aramco will continue to retain full ownership and operational control of its stabilised crude oil pipeline network. The transaction will not impose any restrictions on Aramco’s actual crude oil production volumes that are subject to production decisions issued by the Kingdom.
This deal sets a new benchmark for infrastructure transactions both regionally and internationally.
Aramco President & CEO, Amin H. Nasser, said, "This landmark transaction defines the way forward for our portfolio optimisation programme. We are capitalising on new opportunities that also align strategically with the Kingdom’s recently-launched Shareek programme. Aramco’s strong capital structure will be further enhanced with this transaction, which in turn will help maximise returns for our shareholders. Additionally, our long-term partners in this venture will benefit from investment in one of the world’s most robust energy infrastructures. Moving forward, we will continue to explore opportunities that underpin our strategy of long-term value creation."
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. It is a vote of confidence in our long-term outlook by EIG and other heavyweights in the investment world and reflects the significant progress we are making in our portfolio optimisation programme. This transaction unlocks value from our assets and strengthen Aramco’s resilience, agility and ability to respond to changing market dynamics."
R. Blair Thomas, EIG’s Chairman & CEO, said, "We are honoured to partner with Aramco, an undisputed industry leader, on this landmark transaction. Aramco’s oil pipeline network is a marquee global infrastructure asset. We look forward to investing in this infrastructure which is critical to the global economy, and to driving value for our institutional investors worldwide."
The long-term investment by EIG and other institutional investors underscores the compelling investment opportunity represented by Aramco’s globally-significant pipeline assets, the Company’s long-term outlook and the attractiveness of the Kingdom of Saudi Arabia as a desirable investment destination for international investors. The transaction is expected to close as soon as practicable, subject to customary closing conditions, including any required merger control and related approvals.
'The attack was launched from the north and was unquestionably sponsored by Iran,' Al-Malki told journalists
Saudi's oil production from its Khurais plant is now at more than 1.3 million barrels per day, while current production from its Abqaiq plant is at about 3 million bpd, the source said.
The acquisition of the SABIC stake is consistent with Aramco’s long-term Downstream strategy to grow its integrated refining and petrochemicals capacity and create value from integration across the hydrocarbon chain.
Quoting Saudi Crown Prince Mohammed Bin Salman, SPA reported that the "transfer of four per cent of Aramco shares to the Public Investment Fund... is part of the kingdom's long-term strategy to support the restructuring of its economy".
The first decentralized anime franchise aims to bring an evolution in the anime industry by rewarding creators/staff working on the IP with incentives as long as the IP lives through its financial structure.
Tecom Group, a manager and operator of 10 strategic, sector-focused business districts across Dubai and a major contributor to the rapid growth
The Sharjah Chamber of Commerce (SCCI) and Industry has announced that the 6th edition of the Al Dhaid Date Festival 2022 will take place from July 21 to 24 at Expo Al Dhaid.