Mubadala Investment Company has joined the EIG-led consortium that two months ago acquired for $12.4 billion a 49% stake in the newly formed Aramco Oil Pipelines Company.
Upstream reported on 11 April that Mubadala — which manages $243 billion in assets for the United Arab Emirates sovereign wealth fund — was said to be in talks with consortium leader EIG Global Energy Partners, although no final decision had then been reached.
The size of Mubadala’s stake in the consortium has not been divulged.
Aramco will retain the 51% majority stake in the subsidiary oil pipelines company, which is valued at approximately $25.3 billion.
Aramco Oil Pipelines will operate all the existing and future stabilised crude pipelines of Saudi Aramco in Saudi Arabia. These pipelines connect oilfields to downstream networks.
The pipeline network transports 100% of Aramco’s crude produced in the kingdom under its concession agreement.
The newly established subsidiary, Aramco Oil Pipelines, will lease usage rights in the parent company’s stabilised crude oil pipelines network for a 25-year term.
In return, the subsidiary 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. The tariff will be backed by minimum volume commitments.
“This landmark transaction defines the way forward for our portfolio optimisation programme. We are capitalising on new opportunities that also align strategically with the kingdom’s recently launched Shareek programme,” Aramco chief executive Amin Nasser said at the time.
Abu Dhabi National Oil Company (Adnoc) last year signed a similar deal worth more than $10 billion with a group of investors to sell a 49% stake in its gas pipelines after an earlier transaction saw it divest equity in its oil pipelines.