EIG has entered into a sale and leaseback agreement with Saudi Arabian Oil Co. (Aramco), under which a consortium of investors led by EIG will acquire a 49 percent equity stake in Aramco Oil Pipelines Co., a newly formed entity with rights to 25 years of tariff payments for oil transported through Aramco’s stabilized crude oil pipeline network. The transaction is valued at approximately $12.4 billion with Aramco holding the remaining 51 percent stake in the new entity, indicating a total equity value of Aramco Oil Pipelines of approximately $25.3 billion.
The pipeline network, which includes all of Aramco’s existing and future stabilized crude pipelines in the Kingdom of Saudi Arabia, connects oilfields to downstream networks. The pipeline network transports 100 percent of Aramco’s crude oil produced in the Kingdom under its concession agreement.
As part of the transaction, Aramco will lease the usage rights in its stabilized crude oil pipelines network to Aram