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UAE's Mubadala in talks to join $12.4bn Aramco oil pipeline deal

UAE's Mubadala in talks to join $12.4bn Aramco oil pipeline deal
The company has not reached a final agreement yet
SAUDI ARAMCO
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Mubasher: Mubadala Investment Company, Abu Dhabi-based sovereign wealth fund, is in talks with the US company EIG Global Energy Partners to join a consortium investing in Saudi Aramco’s oil pipelines, according to Bloomberg, citing Mubadala spokesperson.

The spokesperson referred that the company has not reached a final agreement yet with EIG Global Energy Partners, a lead member in the consortium.

On Friday, 9 April, Aramco entered into a lease and lease-back agreement worth around $12.4 billion with EIG, under which a consortium of investors led by the US company will acquire a 49% stake in Aramco Oil Pipelines Company, a newly formed entity.

Aramco will hold the remaining 51% stake in the new entity.

As part of the transaction, Aramco will lease the usage rights in its stabilised crude oil pipeline network to Aramco Oil Pipelines for a 25-year period.

In return, Aramco Oil Pipelines will receive a quarterly, volume-based tariff, payable by Aramco.