Saudi Arabia-based oil giant Saudi Aramco has agreed to a new $12.4 billion pipeline deal with a consortium led by EIG Global Energy Partners, media reports said. According to the deal, Aramco will sell 49 percent stake in Aramco Oil Pipelines Company to the EIG-led consortium.
Aramco President Amin Nasser told the media, “This landmark transaction defines the way forward for our portfolio optimisation programme. We are capitalising on new opportunities that also align strategically with the Kingdom’s recently-launched Shareek program. Aramco’s strong capital structure will be further enhanced with this transaction, which in turn will help maximise returns for our shareholders.”
Saudi Aramco said in a bourse filing to the Saudi Stock Exchange, “This transaction will not impose any restrictions on Saudi Aramco’s actual crude oil production volumes that are subject to production decisions by the Kingdom of Saudi Arabia.”
Recently, it was also reported that Abu Dhabi sovereign investor Mubadala Investment is in discussion with a leading member of the consortium to invest in the project. It was also reported that a final agreement between both parties has not been reached as of yet.
Aramco’s chief executive officer has said that he expects oil demand to increase in 2021. He said that the company is pleased that there are signs of a recovery. Hence he expects this to continue as governments and authorities around the world reopen economies.”
Recently, Aramco also a 44.4 percent slump in net profit for 2020 as a result of weak demand for oil amid the coronavirus pandemic. This means now Aramco will also cut its capital expenditure.