Saudi Aramco Negotiating Sale Of Up To 49% Of Oil Pipeline Business - Reports

(@FahadShabbir)

Saudi Aramco Negotiating Sale of Up to 49% of Oil Pipeline Business - Reports

Saudi Arabia's energy giant Saudi Aramco is holding talks with foreign and domestic investors to sell up to 49 percent in its oil pipeline business for $10-15 billion, The Wall Street Journal reported, citing informed sources

MOSCOW (UrduPoint News / Sputnik - 07th April, 2021) Saudi Arabia's energy giant Saudi Aramco is holding talks with foreign and domestic investors to sell up to 49 percent in its oil pipeline business for $10-15 billion, The Wall Street Journal reported, citing informed sources.

According to the media outlet, the group of investors seeking to purchase a minority stake in oil pipelines could include US investment company Apollo Global Management Inc., energy investment firm EIG Global Energy Partners, Chinese infrastructure fund Silk Road Fund, Chinese private-equity fund China Reform Fund Management Co, along with Saudi pension funds.

The publication notes that the total cost of Saudi Aramco's oil pipeline network could thus exceed $20 billion and the deal to sell a minority stake may be announced later this week.

By retaining a majority stake in the pipeline business, Saudi Arabia will ensure the production control over the assets. According to sources familiar with the matter, the deal prescribes a creation of a joint venture between Saudi Aramco and the company that will win the tender. The joint venture will receive funds from Aramco for transporting oil through pipelines, the media outlet said.

In the spring of 2020, Bloomberg reported for the first time that Saudi Aramco was considering selling a stake in its pipeline division amid falling oil prices.

Saudi Aramco is the national oil company of Saudi Arabia, founded in 1933 with the headquarters located in Dhahran. The company controls almost all of the country's oil production facilities.