China joins a consortium by taking a 49% stake in Aramco Oil Pipelines Co.

Through Farah Elbahrawy at 06/20/2021

(Bloomberg) – China’s Silk Road Fund and Hassana Investment Co., controlled by the Saudi government, have joined a group investing $ 12.4 billion in Saudi Aramco pipelines.

The consortium, led by US firm EIG Global Energy Partners LLC, has now reached an agreement to acquire a 49% stake in Aramco Oil Pipelines Co., a new subsidiary, according to an emailed statement. The group includes the Abu Dhabi sovereign wealth fund Mubadala Investment Co. and Samsung Asset Management. Abu Dhabi is the capital of the United Arab Emirates and, along with Saudi Arabia, a key member of the Organization of the Petroleum Exporting Countries cartel.

The subsidiary will be entitled to 25 years of tariff payments for oil transported through Aramco’s crude pipeline network. Aramco, the world’s largest oil producer, will retain ownership of the remaining 51% of the shares.

Aramco may seek to raise funds from a similarly structured deal for its pipelines as part of a plan to sell non-core assets, people familiar with the matter told Bloomberg. The funds would help the company maintain an annual dividend of $ 75 billion, almost all of which will go to the government.

About Keith Tatum

Check Also

AGIP pipeline leaks large amounts of gas

September 20, 2022September 20, 2022100 Illustrative picture The Kolo-Otueke-Bayelsa Palm Road …

Leave a Reply

Your email address will not be published.