hit tracker
prime news list

all information about tech and other

Saudi Aramco has raised $ 12.4 billion with the oil pipeline deal

Saudi Aramco has raised $ 12.4 billion with the oil pipeline deal


Saudi Aramco said on Friday that it had raised $ 12.4 billion from the sale of a minimum stake to a consortium of business investors in a newly formed oil pipeline.

Saudi Arabia’s energy giant said it has sold 49 percent of Aramco Oil Pipelines to investors led by EIG Global Energy Partners in Washington.

The movement comes Saudi Aramco, Listed on the Tadawul Stock Exchange in Riyadh in 2019, the government, whose main shareholder, is looking to make money to raise money.

Saudi Aramco will lease the rights to use its pipelines to a new company valued at $ 25.3 billion and entitled to pay a 25-year tariff on oil transported from the kingdom’s crude network.

The state-owned company will have a 51 percent stake in the oil pipeline business, maintaining full ownership of the network and operational control.

Saudi Aramco did not say which other groups were part of the consortium. Investors like BlackRock and Brookfield Asset Management, both of whom declined to comment, came out after initial talks.

Under the command of Crown Prince Mohammed bin Salman, Saudi Arabia has become the biggest winner of its revenue raise funds plowing in non-oil sectors – from technology to tourism – as it seeks to diversify the economy.

Saudi Aramco CEO Amin Nasser said the transaction “will help our shareholders maximize profits.”

Saudi Arabia, the world’s largest oil exporter, has enjoyed tremendous economic success over the past year coronavirus pandemic it beat the global economy and drastically reduced energy demand.

Saudi Aramco, which has pledged to pay The largest portion of $ 75 billion Along with the annual dividends promised to the state, along with taxes and royalties, a new internal investment plan to modernize Saudi Arabia is also expected to be addressed.

The latest move is similar to the infrastructure built by the Abu Dhabi National Oil Company, which has raised billions of dollars by selling and leasing the assets of oil and gas pipelines.

Yasir al-Rumayyan, The president of Saudi Aramco and head of the kingdom’s Public Investment Fund, the vehicle chosen by Prince Mohammed for his reforms, has said he will try to gain additional assets from the kingdom.

“Historically, [Saudi Aramco] they did everything themselves. . . they had their airports, their fleets, their pipelines, ”he told the Financial Times this year. “Now, if it makes sense to expropriate some of those assets, we will definitely do it. It could include anything except the main operations.”

Newsletter twice a week

Energy is an essential business in the world and the Energy Source is its newsletter. Every Tuesday and Thursday, directly to your inbox, Energy Sources provides you with key news, advanced analysis, and inside intelligence. Register here.



Source link

admin

Leave a Reply

Your email address will not be published. Required fields are marked *