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Bloomberg
China’s Silk Road Fund and Saudi Arabia’s Hassana Investment Co joined a group investing $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.
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. The funds would help the company maintain a $75 billion annual dividend.