2021-06-22 12:00:00
ARAMCO DEAL $12.4 BLN
ARAMCO - DHAHRAN, June 18, 2021 - Aramco and an international investor consortium, including EIG and Mubadala, today announced the successful closing of the share sale and purchase agreement, in which the consortium has acquired a 49% stake in Aramco Oil Pipelines Company, a subsidiary of Aramco, for $12.4 billion.
The consortium consists of a broad cross-section of investors from North America, Asia and the Middle East. This long-term investment by the consortium underscores the compelling investment opportunity presented by Aramco’s globally-significant pipeline assets, the Company’s robust long-term outlook and the attractiveness of the Kingdom of Saudi Arabia to institutional investors.
As part of the transaction, first announced in April 2021, Aramco Oil Pipelines Company and Aramco entered into a 25-year lease and leaseback agreement for Aramco’s stabilized crude oil pipelines network. Aramco Oil Pipelines Company will receive a tariff payable by Aramco for stabilized crude oil flows, backed by minimum volume commitments. Aramco continues to hold a 51% majority stake in Aramco Oil Pipelines Company and retains full ownership and operational control of its stabilized crude oil pipeline network. The transaction does not impose any restrictions on Aramco’s actual crude oil production volumes, which are subject to production decisions made by the Kingdom.
Aramco President & CEO, Amin H. Nasser, said: “We are pleased to conclude this transaction with the global consortium. The interest we have received from investors shows strong confidence in our operations and the long-term outlook for our business. It is a significant milestone that reflects the value of our assets and paves the way forward for our portfolio optimization strategy. We plan to continue to explore opportunities to capitalize on our industry-leading capabilities and attract the right type of investment to Saudi Arabia.”
Abdulaziz M. Al Gudaimi, Aramco Senior Vice President of Corporate Development, said: “The interest we received for this deal is evidence of continued confidence in our Company from institutional investors and sets a new benchmark for infrastructure transactions globally. This transaction utilizes our world-class pipeline infrastructure to create additional value for our shareholders, reinforcing our Company’s resilience and ability to adapt in a rapidly changing business environment.”
R. Blair Thomas, EIG’s Chairman & CEO, said: “We believe this is the marquee infrastructure transaction globally and we are pleased to see that so many leading international investors agree with us.”
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Earlier:
2021, May, 5, 16:10:00
SAUDI ARAMCO NET INCOME $21.7 BLN
Net income for the first quarter of 2021 increased to SAR 81,440 ($21,717), from SAR 62,478 ($16,661) for the same period in 2020, primarily driven by higher crude oil prices, improved downstream margins and the consolidation of SABIC’s results, partly offset by lower crude oil volumes sold.
2021, April, 12, 09:35:00
SAUDI ARAMCO INVESTMENT $12.4 BLN
Upon closing, Aramco will receive upfront proceeds of around $12.4 billion, further strengthening its balance sheet through one of the largest energy infrastructure deals globally.
2021, April, 9, 11:05:00
SAUDI'S RENEWABLE INVESTMENT $16 BLN
The Kingdom wants to increase the generation capacity of renewable energy sources to about 58.7 gigawatts by 2030, of which 40 gigawatts (GW) would be from solar and 16GW from wind energy and the balance coming from other renewable energy sources,
2021, March, 22, 09:15:00
SAUDI ARAMCO NET INCOME $49 BLN
Aramco achieved a net income of $49 billion in 2020, one of the highest earnings of any public company globally.
2021, March, 22, 09:10:00
SAUDI ARAMCO INVESTMENT DOWN TO $35 BLN
Aramco lowered its guidance for capital expenditure in 2021 to around $35 billion from a range of $40 billion to $45 billion previously
