Published on 20/06/2021 10:43:17 AM | Source: IANS

Saudi Aramco announces completion of share sale worth $12.4bn

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Saudi Aramco has announced the completion of a $12.4 billion sale in its natural gas pipeline to an international investor consortium.

The consortium consists of a broad cross-section of investors from North America, Asia and the Middle East, in which it acquired a 49-percent stake in Aramco Oil Pipelines Co, the Saudi Press Agency (SPA) reported on Saturday

As part of the transaction, first announced in April 2021, Aramco and its subsidiary entered into a 25-year leaseback agreement for the oil giant's stabilised crude oil pipelines network, Xinhua news agency quoted the SPA as saying.

Aramco Oil Pipelines Co. will receive a tariff payable by Aramco for stabilised crude oil flows, backed by minimum volume commitments.

Aramco continues to hold a 51 per cent majority stake in the subsidiary and retains full ownership and operational control of its stabilised crude oil pipeline network.

The transaction does not impose any restrictions on Aramco's actual crude oil production volumes, which are subject to production decisions made by the Kingdom.

"The interest we have received from investors shows strong confidence in our operations and the long-term outlook for our business," Aramco President & CEO Eng, Amin H. Nasser said in a statement on Saturday.

He said his company would continue to explore opportunities to capitalise on the industry-leading capabilities and attract the right type of investment to Saudi Arabia.