"Aramco has signed an agreement with a consortium led by EIG Global Energy Partners, one of the world's leading investors in energy infrastructure projects... At the close of the deal, Aramco will receive a payment of $12.4 billion, further strengthening its balance sheet," the release said. EIG adds that the total value of the new entity is thus estimated at around $25.3 billion.
As part of the deal, Aramco Oil Pipelines Company will be leased the right to use Aramco's oil pipeline infrastructure for 25 years. In return, Aramco will be charged a volume-dependent quarterly oil pumping tariff and a minimum pumping volume.
EIG notes that these are existing and future oil pipelines that link upstream assets with downstream (transportation and refining) assets.
"Aramco will get a 51% stake in the new company and the consortium led by EIG will get 49%. Aramco will retain full ownership and operational control of the pipeline system. The deal will not impose any restrictions on Aramco's actual production volume, which is determined by the kingdom's decision," the statement explained.
"This deal defines the further development of our portfolio optimisation programme... Moving forward, we will continue to explore opportunities that support our long-term value creation strategy," commented Aramco head Amin Nasser on the deal, cited in the release.
source: reuters.com
As part of the deal, Aramco Oil Pipelines Company will be leased the right to use Aramco's oil pipeline infrastructure for 25 years. In return, Aramco will be charged a volume-dependent quarterly oil pumping tariff and a minimum pumping volume.
EIG notes that these are existing and future oil pipelines that link upstream assets with downstream (transportation and refining) assets.
"Aramco will get a 51% stake in the new company and the consortium led by EIG will get 49%. Aramco will retain full ownership and operational control of the pipeline system. The deal will not impose any restrictions on Aramco's actual production volume, which is determined by the kingdom's decision," the statement explained.
"This deal defines the further development of our portfolio optimisation programme... Moving forward, we will continue to explore opportunities that support our long-term value creation strategy," commented Aramco head Amin Nasser on the deal, cited in the release.
source: reuters.com
