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December 11, 2021

Aramco seals $15.5bn gas pipeline stake deal

Saudi Aramco has signed a $15.5bn gas pipeline stake deal with a consortium led by US investment firm BlackRock Real Assets and Hassana Investment Company.

By MEED   

Saudi Aramco has announced signing a $15.5bn lease and leaseback deal involving its natural gas pipeline network with a consortium led by US investment firm BlackRock Real Assets and Hassana Investment Company, the investment management arm of the General Organisation for Social Insurance (Gosi) in Saudi Arabia.

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As part of the transaction, a newly formed subsidiary, known as Aramco Gas Pipelines Company, will lease usage rights in Aramco’s gas pipelines network and lease them back to Aramco for 20 years, the Saudi energy giant said.

In return, Aramco Gas Pipelines Company will receive a tariff payable by Aramco for the gas products that will flow through the network, backed by minimum commitments on throughput.

Aramco will hold a 51% majority stake in Aramco Gas Pipeline Company and sell a 49% stake to the investor consortium led by BlackRock and Hassana.

Upon completing the gas pipeline transaction, Aramco will receive upfront proceeds of $15.5bn, ‘further strengthening its balance sheet,’ Aramco said in its statement.

“Aramco will continue to retain full ownership and operational control of its gas pipeline network and the transaction will not impose any restrictions on Aramco’s production volumes,” it said.

The transaction, one of the world’s largest energy infrastructure deals, “is expected to close as soon as practicable, subject to customary closing conditions, including any required merger control and related approvals,” Aramco added. 

Aramco’s move to divest a minority stake in its gas pipeline network follows the conclusion of a similar transaction involving its oil pipelines in June this year. The state enterprise earned $12.4bn from a 49 per cent stake divestment in its crude oil pipeline infrastructure.

This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here.

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img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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