Logo of Mubadala Investment Co.
Abu Dhabi’s sovereign investor Mubadala Investment Co. said it has joined a consortium led by US-based EIG Global Energy Partners to buy a 49% equity stake in Aramco Oil Pipelines Co., Reuters reported.
According to data available with Argaam, Saudi Aramco entered into a deal with a consortium led by EIG Global Energy Partners (EIG) to optimize the value of its assets through a lease-and-lease-back agreement involving its stabilized crude oil pipeline network. Saudi Aramco will receive upfront proceeds of around $12.4 billion upon closing.
As part of the transaction, a newly-formed Aramco subsidiary, Aramco Oil Pipelines Co., will lease usage rights in Aramco’s stabilized crude oil pipelines network for a 25-year period.
Aramco will hold a 51% majority stake in the new company and the EIG-led consortium will hold a 49% stake.
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