Riyadh – Mubasher: The Saudi Arabian Oil Company’s (Saudi Aramco) signed an agreement worth $12.4 billion (SAR 46.5 billion) with a consortium led by EIG Global Energy Partners to sell 49% equity of Aramco Oil Pipelines Company, according to a disclosure to Tadawul on Sunday.

The 25-year lease transaction is expected to be finalised in the near future, subject to meeting all requirements, regulations, and approvals.

The lease-and-lease-back deal involves the stabilised crude oil pipeline network while further strengthens its balance sheet. It also reinforces Aramco’s position in attracting foreign investment into Saudi Arabia.

Aramco Oil Pipelines will receive a tariff payable by Aramco for the network’s stabilised crude oil, where the parent company will hold a 51% majority stake in the newly-formed subsidiary and the EIG-led consortium will hold 49%.

Aramco Senior Vice President of Corporate Development, Abdulaziz Al Gudaimi, commented, saying: “In addition to strengthening our balance sheet, this deal sets a new benchmark for infrastructure transactions both regionally and internationally.”

“It is a vote of confidence in our long-term outlook by EIG and other heavyweights in the investment world and reflects the significant progress we are making in our portfolio optimization program," he added.

US-based asset manager BlackRock and Canadian Brookfield Asset Management were both reportedly no longer in the race to acquire a stake in Aramco’s pipeline business.