xizhimen
Experienced member
- Messages
- 7,391
- Reactions
- Nation of residence
-
- Nation of origin
-
Aramco closes US$12 bil pipeline deal with China, UAE backing
BloombergJune 19, 2021 5:20 PM
RIYADH: China’s Silk Road Fund and Saudi Arabia’s Hassana Investment Co joined a group investing US$12.4 billion in Saudi Aramco’s oil pipelines.
The consortium, led by US firm EIG Global Energy Partners LLC, has now closed a deal to acquire a 49% equity stake in Aramco Oil Pipelines Co, a new subsidiary, according to an emailed statement.
The group includes Abu Dhabi sovereign wealth fund Mubadala Investment Co and Samsung Asset Management. Abu Dhabi is the capital of the UAE and, along with Saudi Arabia, a key member of the Organisation of Petroleum Exporting Countries cartel.
The subsidiary will have rights to 25 years of tariff payments for oil transported through Aramco’s crude pipeline network. Aramco will retain ownership of the other 51% of the shares.
Aramco may look to raise money from a similarly structured deal for its natural gas pipelines as part of a plan to sell non-core assets, people familiar with the matter have told Bloomberg.
The funds would help the company maintain a US$75 billion annual dividend, almost all of which goes to the government.
Aramco closes US$12 bil pipeline deal with China, UAE backing
The consortium will hold 49% of equity stake while Aramco will retain ownership of the other 51%.
www.freemalaysiatoday.com
