Saudi Arabian Oil Company (Aramco) has announced a US$15.5bn gas pipeline sale and leaseback deal with a consortium led by BlackRock (NYSE:BLK) and the investment arm of Saudi Arabia’s General Organization for Social Insurance (GOSI).
It is the world’s largest-ever energy infrastructure deals and is the second deal of its kind this year, the state-backed Saudi oil firm noted. Moreover, Aramco said the deal represents significant progress in its asset optimisation programme.
The transaction sees the oil company receive US$15.5bn and a 20-year lease from a newly formed company called Aramco Gas Pipelines which will receive a tariff for the gas products that flow through the network.
The oil company will retain a 51% stake in the new Aramco Gas Pipeline Company with the other 49% held by the consortium members.
“Today, we have reached yet another major milestone in our portfolio optimisation program as we build towards a bigger and stronger gas business,” said Aramco chief executive Amin Nasser.
“It further underscores our commitment to long-term value creation for our shareholders, while bringing in BlackRock (NYSE:BLK) and Hassana as partners demonstrates our unique value proposition and ability to attract leading global investors to Saudi Arabia.
“With gas expected to play a key role in the global transition to a more sustainable energy future, our partners will benefit from a deal tied to a world-class gas infrastructure asset.”