EIG-led group closes $12.4bn stake acquisition in Aramco Oil Pipelines

EIG said that a consortium of investors led by it has closed its previously announced $12.4 billion acquisition of a 49% stake in Aramco Oil Pipelines Company from Saudi Aramco.

The deal was announced in April 2021.

Aramco Oil Pipelines Company is a newly created entity for holding the crude oil pipeline assets of Saudi Aramco. The new pipeline company has rights to 25 years of tariff payments for oil transported via Saudi Aramco’s stabilized crude oil pipeline network.

EIG said that the co-investment process it had led in Aramco Oil Pipelines had evoked interest from institutional investors from China, Saudi Arabia, South Korea, the UAE, and the US. These include Mubadala Investment Company, Silk Road Fund, Samsung Asset Management, and Hassana.

EIG-led group closes $12.4bn stake acquisition in Aramco Oil Pipelines. Photo courtesy of Saudi Arabian Oil Co.

R. Blair Thomas – EIG Chairman and CEO said: “We are pleased to have completed this transaction with Aramco, a preeminent global energy supplier. The caliber of this marquee global infrastructure asset is further evidenced by the leading investors that have invested alongside EIG.

“We are honored to be working with this world-class consortium and look forward to a long-term, fruitful partnership.”

Saudi Aramco will retain a 51% majority stake in Aramco Oil Pipelines Company along with full ownership and operational control of the stabilized crude oil pipeline network. The company said that the deal does not put any curbs on its actual crude oil production volumes, which are contingent on production decisions made by the Saudi government.

Amin H. Nasser – Saudi Aramco President and CEO said: “We are pleased to conclude this transaction with the global consortium. 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.”