Business Wire

EIG Signs $12.4 Billion Infrastructure Deal with Aramco

Share

EIG, a leading institutional investor to the global energy sector and one of the world’s leading infrastructure investors, today announced that it has entered into a lease and lease-back agreement with Saudi Arabian Oil Co. ("Aramco"), under which a consortium of investors led by EIG will acquire a 49% equity stake in Aramco Oil Pipelines Company (“Aramco Oil Pipelines”), a newly formed entity with rights to 25-years of tariff payments for oil transported through Aramco’s stabilized crude oil pipeline network. The transaction is valued at approximately $12.4 billion with Aramco holding the remaining 51% stake in the new entity, indicating a total equity value of Aramco Oil Pipelines of approximately $25.3 billion.

The pipeline network, which includes all of Aramco’s existing and future stabilized crude pipelines in the Kingdom of Saudi Arabia, connects oilfields to downstream networks. The pipeline network transports 100% of Aramco’s crude oil produced in the Kingdom under its Concession Agreement.

As part of the transaction, Aramco will lease the usage rights in its stabilized crude oil pipelines network to Aramco Oil Pipelines, and Aramco Oil Pipelines 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, payable by Aramco. The tariff will be backed by minimum volume commitments. Aramco will at all times retain title to, and operational control of, the pipeline network and will assume all operating and capital expense risk. The transaction will not impose any restrictions on Aramco’s actual crude oil production volumes that are subject to production decisions issued by the Kingdom.

“This is an extraordinary opportunity for EIG’s investors, and we are proud to partner with Aramco in this marquee global infrastructure asset,” said R. Blair Thomas, EIG’s Chairman and CEO. “This transaction aligns perfectly with EIG’s philosophy of investing in high-quality assets with contracted cash flows in critical infrastructure. We look forward to a long-term partnership with Aramco and to delivering value for our investors through this landmark investment.”

Aramco President & CEO, Amin H. Nasser, said: “This landmark transaction defines the way forward for our portfolio optimization program. We are capitalizing on new opportunities that also align strategically with the Kingdom’s recently-launched Shareek program. Aramco’s strong capital structure will be further enhanced with this deal, which in turn will help maximize returns for our shareholders. Additionally, our long-term partners in this venture will benefit from investment in one of the world’s most impressive energy infrastructures. Moving forward, we will continue to explore opportunities that underpin our strategy of long-term value creation.”

The transaction is expected to close as soon as practicable, subject to customary closing conditions, including any required merger control and related regulatory approvals.

HSBC Bank plc acted as financial advisor to EIG in connection with the transaction, and Latham & Watkins served as EIG’s legal advisor.

About EIG

EIG is a leading institutional investor to the global energy sector with $22.0 billion under management as of December 31, 2020. EIG specializes in private investments in energy and energy-related infrastructure on a global basis. During its 39-year history, EIG has committed over $34.9 billion to the energy sector through more than 365 projects or companies in 36 countries on six continents. EIG’s clients include many of the leading pension plans, insurance companies, endowments, foundations and sovereign wealth funds in the U.S., Asia and Europe. EIG is headquartered in Washington, D.C. with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul. For additional information, please visit EIG’s website at www.eigpartners.com.

About Aramco

Aramco is a global integrated energy and chemicals company. We are driven by our core belief that energy is opportunity. From producing approximately one in every eight barrels of the world’s oil supply to developing new energy technologies, our global team is dedicated to creating impact in all that we do. We focus on making our resources more dependable, more sustainable and more useful. This helps promote stability and long-term growth around the world. www.aramco.com.

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

EIG
Sard Verbinnen & Co.
Kelly Kimberly / Brandon Messina
+1 212-687-8080
EIG-SVC@sardverb.com

Aramco
International Media Relations: international.media@aramco.com
Investor Relations: investor.relations@aramco.com

About Business Wire

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Latest Cloud Survey From Denodo Reveals Advanced Workloads Moving to the Cloud While Hybrid and Multi-Cloud Management Skills Are in High Demand18.5.2021 10:00:00 EEST | Press release

Data virtualization leader Denodo’s fourth annual cloud usage survey finds organizations are accelerating their cloud journey to take advantage of its flexibility, control costs, speed time-to-market, and simplify data management. According to survey respondents, which included 150 global business and IT professionals from various industry sectors, hybrid-cloud deployment remains the dominant choice, as more than a third of these organizations (35 percent) use this model. Private cloud has shown some vibrant usage, accounting for almost a quarter of all workloads (24 percent), followed by public cloud, which remained almost flat at 16 percent. Multi-cloud remains a popular choice for almost one in ten organizations (9 percent) who opt to procure best of breed applications, data repositories, and infrastructure orchestration technologies among different cloud service providers to avoid a single vendor lock-in. This press release features multimedia. View the full release here: https://w

Celltrion Confirms Neutralising Potency Against Emerging SARS-CoV-2 Variants With Anti-COVID-19 Monoclonal Antibody Treatment regdanvimab (CT-P59)18.5.2021 09:39:00 EEST | Press release

Celltrion Group today announced that CT-P59, an anti-COVID-19 monoclonal antibody treatment candidate, has confirmed neutralising potency against emerging variants first identified in New York (B.1.526), Nigeria (B.1.525) and India (B.1.617).1 The Korea Disease Control and Prevention Agency (KDCA) has assessed the test by combining the antibody with recent emerging variants first identified in New York (B.1.526), Nigeria (B.1.525) and Brazil (P.1); infecting the host cell with this combination to identify neutralising effect against the variants with CT-P59. The monoclonal antibody candidate CT-P59 demonstrated strong neutralising capability against the New York (B.1.526) and Nigeria (B.1.525) variants and produced neutralising titers against the Indian variant (B.1.617) in an in-vitro pseudo virus assay.1 The company plans to study neutralising titers against additional emerging strains, including the Brazil variant (P.1)2, in order to proactively address the pandemic as the virus con

iBASIS Carrier Voice for Teamwork™ Enables China Telecom Europe (CTE) and the Carrier Community to Meet Surging Post-Pandemic Enterprise Demand18.5.2021 08:00:00 EEST | Press release

iBASIS, the leading provider of communications solutions for operators and digital players worldwide, today announced the launch of iBASIS Carrier Voice for Teamwork, enabling carriers such as China Telecom Europe (CTE), a leading provider to European multinationals, to serve Enterprise customers with much needed cloud-based PBX functionality for their collaboration platforms. With the massive shift toward Microsoft Teams triggered by COVID-19, carriers have an immediate opportunity to seize new Enterprise revenues by delivering a proven solution to bring voice to Microsoft Teams. iBASIS Carrier Voice for Teamwork™ provides global service availability, from and to the cloud via 2-way PSTN numbers, enabling native voice service in 60+ markets for global termination to help carriers respond to their local Enterprise demand. Carriers have the option to keep their own numbers to avoid porting or leverage iBASIS for local numbers. The solution is built on iBASIS’ established wholesale leade

Medicago and GSK Announce Positive Interim Phase 2 Results for Adjuvanted COVID-19 Vaccine Candidate18.5.2021 08:00:00 EEST | Press release

Medicago, a biopharmaceutical company headquartered in Quebec City, and GlaxoSmithKline (GSK) are pleased to report positive interim Phase 2 clinical trial safety and immunogenicity data for Medicago’s plant-derived COVID-19 vaccine candidate, which has been tested in combination with GSK’s pandemic adjuvant. These results are part of the ongoing Phase 2/3 study and reiterate the promising profile observed during Phase 1 testing. Immunogenicity, as measured by the neutralizing antibody titer, was high - about 10 times higher than those in a panel of sera from patients recovering from COVID-19. No related severe adverse events were reported and reactogenicity was generally mild to moderate and short in duration. “We are very excited to see such positive results from the Phase 2 data. After two doses, the adjuvanted vaccine candidate induced robust neutralizing antibody and cellular immune responses in all subjects, irrespectively of age,” said Nathalie Landry, Executive Vice President,

Stephen Stonberg appointed interim CEO of Bittrex Global17.5.2021 20:14:00 EEST | Press release

The Boards of Directors (the “Boards”) of Bittrex Global GmbH (Vaduz, Liechtenstein) and Bittrex Global (Bermuda) Ltd (Hamilton, Bermuda) have confirmed that Tom Albright is stepping down from his role as CEO of both companies effective today. The Boards are grateful for the contributions Tom has made. Stephen Stonberg, current CFO and COO of Bittrex Global, has been appointed by the Boards to serve as interim CEO, to oversee management of the Companies. “Tom has brought key leadership as Bittrex Global has grown to serve the crypto marketplace,” said Bill Shihara, Co-Founder Bittrex, Inc. “Tom has also helped guide the company through a period of significant growth and change within our sector”. “We are incredibly pleased that Stephen Stonberg will be leading Bittrex Global as interim CEO,” said Shihara. “Stephen has served as CFO and COO since February 2019, and has a deep understanding of our business, and has over 25 years experience in the financial services sector, and held leade

Lumen Metabolic Health Device Now Peer-reviewed17.5.2021 19:57:00 EEST | Press release

Lumen , a health tech company and the creators of the world's first portable metabolism measurement device, has officially been peer-reviewed and published in the Interactive Journal of Medical Research (I-JMR). In collaboration with San Francisco State University, Lumen has validated an ongoing study launched in 2020, which shows the validity of Lumen® to detect changes in metabolic fuel utilization in a comparable manner with a laboratory standard metabolic cart, providing the ability for real-time metabolic information for users under any circumstances. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210517005774/en/ Lumen now peer-reviewed (Photo: Business Wire) Developed through years of scientific testing and validation, Lumen is the first handheld, portable device and app that measures your metabolism in real-time with just your breath. The methodology behind the peer-reviewed validation of Lumen The study compares the

Orbia Announces Cash Tender Offer for Its Outstanding Notes Due 202217.5.2021 16:46:00 EEST | Press release

Orbia Advance Corporation, S.A.B. de C.V. (“Orbia”) (BMV: ORBIA) announces that it has commenced an offer to purchase its outstanding US$750,000,000 principal amount of 4.875% Senior Notes due 2022 (CUSIP/ISIN: 59284BAB4; P57908AD0 / US59284BAB45; USP57908AD01) (the “Securities”) pursuant to an offer (the “Tender Offer”) to purchase for cash any and all of the Securities on the terms and subject to the conditions set forth in the offer to purchase, dated May 17, 2021 (the “Offer to Purchase”) and the related notice of guaranteed delivery (the “Notice of Guaranteed Delivery” and, together with the Offer to Purchase, the “Offer Documents”). The Tender Offer will expire at 5:00 p.m. (New York City time) on May 21, 2021, unless extended (such date and time, as the same may be extended, the “Expiration Date”). Securities validly tendered may be withdrawn at any time at or prior to 5:00 p.m. (New York City time) on May 21, 2021, unless extended, but not thereafter. The settlement date of the

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom