The announcement comes as Aramco faces pressure to maintain hefty dividend payments to the Saudi government.
Energy giant Saudi Aramco said it has struck a 12.4-billion-dollar deal to sell a minority stake in a newly formed oil pipeline business to a consortium led by US-based EIG Global Energy Partners. The deal underscores how Aramco – the kingdom’s cash cow – seeks to monetise its once-untouchable assets to generate revenue for the Saudi government as it accelerates efforts to diversify the oil-reliant economy. « Upon closing, Aramco will receive upfront proceeds of around $12.4 billion, further strengthening its balance sheet through one of the largest energy infrastructure deals globally, » the company said in a statement late Friday. « 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. » The EIG-led consortium will hold a 49% stake in the subsidiary, Aramco said, adding that it will retain « full ownership and operational control ». In a separate statement, EIG, a Washington-based energy investment firm, said the new venture is valued at approximately $25.3 billion. The deal covers all of Aramco’s « existing and future stabilised crude pipelines » in the kingdom, an elaborate network that connects oil fields to downstream facilities, EIG said.
