State owned Saudi Arabian Oil Co (Aramco) successfully closed the sale of 49% stake in its subsidiary Aramco Oil Pipelines Company worth $12.4bn with a consortium led by US-based EIG Partners on June 18. The consortium also includes Abu Dhabi sovereign wealth fund Mubadala, China’s Silk Road Fund, Korea’s Samsung Asset Management and Saudi investment company Hassana. The deal was first reported in April this year. As a part of the transaction, Aramco Oil Pipelines and Aramco have entered into a 25Y agreement under which Aramco Oil Pipelines will receive tariff based on a commitment of minimum volume of oil flow from Aramco. After the deal, Aramco will hold a 51% stake in the pipelines business and will retain full ownership and operational control of the pipeline network. Aramco CEO, Amin H. Nasser said, “We are pleased to conclude this transaction with the global consortium…” and added “We plan to continue to explore opportunities to capitalize on our industry-leading capabilities and attract the right type of investment to Saudi Arabia.”
Aramco’s 2.875% 2024s were down 0.15 to trade at 105.47 and its 4.25% 2039s were up 0.18 to trade at 112.64.
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