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Aramco signs $15.5bn deal to sell stake in newly-formed gas pipelines subsidiary

Aramco signs $15.5bn deal to sell stake in newly-formed gas pipelines subsidiary
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SAUDI ARAMCO
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Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) has inked an agreement with a consortium led by BlackRock Real Assets and Hassana Investment Company to sell a 49% stake in Aramco Gas Pipelines Company in exchange for $15.5 billion (SAR 58.1 billion).

As part of the transaction's terms, Aramco will lease the usage rights in its gas pipelines network to its newly formed subsidiary Aramco Gas Pipelines Company for 20 years, according to a bourse filing on Tuesday.

Meanwhile, Aramco Gas Pipelines Company will grant Aramco the exclusive right to use, operate, and maintain the gas pipeline network for 20 years in exchange for a quarterly tariff payable, backed by a minimum level of gas production.

Subject to customary closing conditions, the transaction will not affect Saudi Aramco’s actual production volumes, as Aramco will continue to maintain full ownership and operational control of its gas pipeline network.