Aramco signs a $12.4 billion pipeline deal with EIG-led consortium, says an article on Reuters.
Both companies to benefit
Saudi oil giant Aramco on Friday entered into a $12.4 billion deal with a consortium of investors led by EIG Global Energy Partners that would give the investor group a 49% stake in Aramco’s pipeline assets, the two companies said.
Lease-back agreement
The EIG-led group signed a lease and lease-back agreement with Aramco, acquiring the equity stake in the newly formed Aramco Oil Pipelines Co, with rights to 25-years of tariff payments for oil transported through Aramco’s crude oil pipeline network, said in a statement. Aramco will own a 51% stake in the new company.
Aramco stake is preparing a so-called “staple financing” for its bidders – a financing package provided by the seller that buyers can use to back their purchase.
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Source: Reuters
