Following the signing of a lease back in April 2021, Abu Dhabi’s state-owned Mubadala joined the EIG Global Energy Partners-led group to purchase Saudi Aramco’s stake in newly- formed crude oil pipeline entity.
The deal worth $12.4 billion agrees ownership of 49% of the pipeline, Saudi Aramco, however, will retain a 51% stake in the new company, which is valued at around $25.3 billion. The new entity will also provide Saudi Aramco with the exclusive right to use, transport through and maintain the pipeline network for a 25-year period.
“We are capitalizing on new opportunities that also align strategically with the Kingdom’s recently-launched Shareek program. Aramco’s strong capital structure will be further enhanced with this transaction, which in turn will help maximize returns for our shareholders,” said Aramco president and CEO Amin Nasser.
The deal is expected to help Saudi Aramco monetise its pipeline assets.
