The Strategist

Saudi Aramco completes sale of stake in oil pipeline business


06/21/2021 - 04:16



Saudi Arabian oil and gas company Saudi Aramco has completed the sale of 49% in its oil pipeline business Aramco Oil Pipelines Company (AOPC) to a group of investors for $12.4 billion, the company said in a statement.



Saudi Aramco
Saudi Aramco
"Aramco and an international consortium of investors including EIG and Mubadala announced today the successful closing of a sale and purchase agreement under which the consortium acquired a 49% stake in Aramco Oil Pipelines Company, a division of Aramco, for $12.4 billion," Saudi Aramco said.

It is noted that AOPC will be leased the right to use Aramco's oil pipeline infrastructure for 25 years. A tariff for pumping oil, as well as the minimum volume of pumping will be set for Aramco. In addition, the company will retain full ownership and operational control of its pipeline network. The deal does not impose any restrictions on Aramco's actual oil production volumes.

In April, Saudi Aramco announced an agreement to sell a stake in its new subsidiary AOPC to a consortium led by US-based EIG Global Energy Partners. The media later reported that the UAE sovereign investment fund Mubadala joined a group of investors acquiring a stake in the Aramco unit.

Saudi Aramco, Saudi Arabia's national oil company, was founded in 1933. It is headquartered in Dhahran. The company controls virtually all of the country's oil production capacity.

source: reuters.com




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