Global law firm White & Case LLP and the Law Office of Megren M. Al-Shaalan have advised the Saudi Arabian Oil Company (Saudi Aramco) on a long term infrastructure deal with a consortium led by EIG Global Energy Partners (EIG), one of the world’s leading infrastructure investors, to optimize its assets through a lease-and-lease-back arrangement involving its stabilized crude oil pipeline network.
“White & Case has a strong and enduring relationship with Saudi Aramco and our team has successfully supported this long-standing and valued client on a strategically important long term transaction with EIG,” said White & Case partner Ivan Paskal. “The complexity of the transaction showcases the strength and depth of experience in energy infrastructure matters that White & Case has developed over many years.”
Upon closing, Saudi Aramco will receive upfront proceeds of around US$12.4 billion. As part of the transaction, a newly-formed Saudi Aramco subsidiary, Aramco Oil Pipelines Company, will lease usage rights in Saudi Aramco’s stabilized crude oil pipelines network for a 25-year period. In return, Aramco Oil Pipelines Company will receive a tariff payable by Saudi Aramco for the stabilized crude oil that flows through the network, backed by minimum volume commitments. Saudi Aramco will hold a 51 percent majority stake in the new company and the EIG-led consortium will hold a 49 percent stake.
“Lawyers in the White & Case offices in London, New York, Washington, DC, Los Angeles, Dubai and Brussels, alongside the Law Office of Megren M. Al-Shaalan, combined to execute what will be one of the world’s largest energy infrastructure deals,” said White & Case partner Carina Radford. “The deal demonstrates Saudi Aramco’s status as an attractive company for foreign investment and highlights White & Case as a leading adviser to the global energy industry.”
White & Case previously advised Saudi Aramco on its SAR 96 billion (US$25.6 billion) initial public offering, the world’s largest IPO to date.
The White & Case team which advised on the transaction included partners Ivan Paskal (New York & Dubai), Carina Radford (London), Marcus Booth (Dubai & London), Sami Al-Louzi (Dubai), Clark Wohlferd, Gary Kashar (both New York), Carolyn Lamm, Hansel Pham (both Washington, DC), Jacquelyn MacLennan, Strati Sakellariou-Witt (both Brussels), Andrew Kreisberg (Los Angeles), Stuart Matty, Michael Watson (both London), Rob Milne (New York) and Richard Burke (Washington, DC), local partner Sonia Abdul-Rahman (Dubai) and associates Aleksandra Stadnik (Abu Dhabi), Mark Andrews, Catherine Andrews (both London), Tommaso Poli, Giuseppe Tantulli (both Brussels), Hannelore Sklar (Washington, DC) and Adnan Bekdur, Stefan Mrozinski (both Dubai). The Law Office of Megren M. Al-Shaalan team in Riyadh was led by managing partner Megren Al-Shaalan and included associates Nawaaf Alawaad and Husam Azhar.
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