{"id":2509,"date":"2021-04-09T20:40:45","date_gmt":"2021-04-09T20:40:45","guid":{"rendered":"https:\/\/dev.pixflex.com\/eig2\/?p=2509"},"modified":"2021-04-09T20:40:45","modified_gmt":"2021-04-09T20:40:45","slug":"eig-signs-12-4-billion-infrastructure-deal-with-aramco","status":"publish","type":"post","link":"https:\/\/dev.pixflex.com\/eig2\/eig-signs-12-4-billion-infrastructure-deal-with-aramco\/","title":{"rendered":"EIG Signs $12.4 Billion Infrastructure Deal with Aramco"},"content":{"rendered":"<p style=\"text-align: center;\"><em>EIG-led consortium to acquire 49% equity stake in new entity, Aramco Oil Pipelines Co., with rights to 25-years of tariff payments for oil transported through Aramco\u2019s stabilized crude oil pipeline network <\/em><\/p>\n<p style=\"text-align: center;\"><em>\u00a0<\/em><em>One of the world\u2019s largest energy infrastructure transactions<\/em><\/p>\n<p style=\"text-align: justify;\"><strong>WASHINGTON, D.C. \u2014 April 9, 2021 \u2014 <\/strong>EIG, a leading institutional investor to the global energy sector and one of the world\u2019s leading infrastructure investors, today announced that it has entered into a lease and lease-back agreement with Saudi Arabian Oil Co. (&#8220;Aramco&#8221;), under which a consortium of investors led by EIG will acquire a 49% equity stake in Aramco Oil Pipelines Company (\u201cAramco Oil Pipelines\u201d), a newly formed entity with rights to 25-years of tariff payments for oil transported through Aramco\u2019s stabilized crude oil pipeline network.\u00a0 The transaction is valued at approximately $12.4 billion with Aramco holding the remaining 51% stake in the new entity, indicating a total equity value of Aramco Oil Pipelines of approximately $25.3 billion.<\/p>\n<p style=\"text-align: justify;\">The pipeline network, which includes all of Aramco\u2019s existing and future stabilized crude pipelines in the Kingdom of Saudi Arabia, connects oilfields to downstream networks. \u00a0The pipeline network transports 100% of Aramco\u2019s crude oil produced in the Kingdom under its Concession Agreement.<\/p>\n<p style=\"text-align: justify;\">As part of the transaction, Aramco will lease the usage rights in its stabilized crude oil pipelines network to Aramco Oil Pipelines, and Aramco Oil Pipelines will grant back to Aramco the exclusive right to use, transport through, operate and maintain the pipeline network during the 25-year period in exchange for a quarterly, volume-based tariff, payable by Aramco. The tariff will be backed by minimum volume commitments. \u00a0Aramco will at all times retain title to, and operational control of, the pipeline network and will assume all operating and capital expense risk. \u00a0The transaction will not impose any restrictions on Aramco\u2019s actual crude oil production volumes that are subject to production decisions issued by the Kingdom.<\/p>\n<p style=\"text-align: justify;\">\u201cThis is an extraordinary opportunity for EIG\u2019s investors, and we are proud to partner with Aramco in this marquee global infrastructure asset,\u201d said R. Blair Thomas, EIG\u2019s Chairman and CEO. \u00a0\u201cThis transaction aligns perfectly with EIG\u2019s philosophy of investing in high-quality assets with contracted cash flows in critical infrastructure. \u00a0We look forward to a long-term partnership with Aramco and to delivering value for our investors through this landmark investment.\u201d<\/p>\n<p style=\"text-align: justify;\">Aramco President &amp; CEO, Amin H. Nasser, said: \u201cThis landmark transaction defines the way forward for our portfolio optimization program. We are capitalizing on new opportunities that also align strategically with the Kingdom\u2019s recently-launched Shareek program. Aramco\u2019s strong capital structure will be further enhanced with this deal, which in turn will help maximize returns for our shareholders. Additionally, our long-term partners in this venture will benefit from investment in one of the world\u2019s most impressive energy infrastructures. Moving forward, we will continue to explore opportunities that underpin our strategy of long-term value creation.\u201d<\/p>\n<p style=\"text-align: justify;\">The transaction is expected to close as soon as practicable, subject to customary closing conditions, including any required merger control and related regulatory approvals.<\/p>\n<p style=\"text-align: justify;\">HSBC Bank plc acted as financial advisor to EIG in connection with the transaction, and Latham &amp; Watkins served as EIG\u2019s legal advisor.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\"><strong>About EIG<\/strong><\/p>\n<p style=\"text-align: justify;\">EIG is a leading institutional investor to the global energy sector with $22.0 billion under management as of December 31, 2020. EIG specializes in private investments in energy and energy-related infrastructure on a global basis. During its 39-year history, EIG has committed over $34.9 billion to the energy sector through more than 365 projects or companies in 36 countries on six continents. EIG\u2019s clients include many of the leading pension plans, insurance companies, endowments, foundations and sovereign wealth funds in the U.S., Asia and Europe. EIG is headquartered in Washington, D.C. with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul. For additional information, please visit EIG\u2019s website at <a href=\"http:\/\/www.eigpartners.com\">www.eigpartners.com<\/a>.<\/p>\n<p style=\"text-align: justify;\">\u00a0<\/p>\n<p style=\"text-align: justify;\"><strong>About Aramco<\/strong><\/p>\n<p style=\"text-align: justify;\">Aramco is a global integrated energy and chemicals company. We are driven by our core belief that energy is opportunity. From producing approximately one in every eight barrels of the world\u2019s oil supply to developing new energy technologies, our global team is dedicated to creating impact in all that we do. We focus on making our resources more dependable, more sustainable and more useful. This helps promote stability and long-term growth around the world. <a href=\"http:\/\/www.aramco.com\">www.aramco.com<\/a>.<\/p>\n<p style=\"text-align: justify;\">\u00a0<\/p>\n<p style=\"text-align: justify;\"><span style=\"text-decoration: underline;\"><strong>Media Contacts: <\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong>EIG<\/strong><\/p>\n<p style=\"text-align: justify;\">Sard Verbinnen &amp; Co.<\/p>\n<p style=\"text-align: justify;\">Kelly Kimberly \/ Brandon Messina<\/p>\n<p style=\"text-align: justify;\">+1 212-687-8080<\/p>\n<p style=\"text-align: justify;\"><a href=\"mailto:EIG-SVC@sardverb.com\">EIG-SVC@sardverb.com<\/a><\/p>\n<p style=\"text-align: justify;\">\u00a0<\/p>\n<p style=\"text-align: justify;\"><strong>Aramco<\/strong><\/p>\n<p style=\"text-align: justify;\"><strong>International Media Relations:<\/strong> <a href=\"mailto:international.media@aramco.com\">international.media@aramco.com<\/a><\/p>\n<p style=\"text-align: justify;\"><strong>Investor Relations:<\/strong> <a href=\"mailto:investor.relations@aramco.com\">investor.relations@aramco.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>EIG-led consortium to acquire 49% equity stake in new entity, Aramco Oil Pipelines Co., with rights to 25-years of tariff payments for oil transported through Aramco\u2019s stabilized crude oil pipeline network \u00a0One of the world\u2019s largest energy infrastructure transactions WASHINGTON, D.C. \u2014 April 9, 2021 \u2014 EIG, a leading institutional investor to the global energy [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2509","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - 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