SINGAPORE (ICIS)--An international consortium has acquired a 49% stake in Aramco Oil Pipelines Co, a unit of Saudi Aramco, for $12.4bn, the energy giant said over the weekend.
The consortium includes US-based energy sector investor EIG and UAE sovereign wealth fund Mubadala Investment Co, Saudi Aramco said in a statement on 18 June.
As part of the transaction, first announced in April this year, Aramco Oil Pipelines Company and Aramco entered into a 25-year lease and leaseback agreement for Aramco’s stabilised crude oil pipelines network.
Aramco Oil Pipelines Company will receive a tariff payable by Aramco for stabilized crude oil flows, backed by minimum volume commitments.
Aramco continues to hold a 51% majority stake in Aramco Oil Pipelines Company and retains full ownership and operational control of its stabilized crude oil pipeline network.
The transaction does not impose any restrictions on Aramco’s actual crude oil production volumes, which are subject to production decisions made by Saudi Arabia.
Photo: The Ras Tanura refinery (Source: Saudi Aramco)