Saudi Arabian Oil Company (Saudi Aramco) said on Sunday that the sale of its 49 percent stake in Aramco Oil Pipelines Company will not impede its crude production.
The oil giant had entered a share sale and purchase agreement with an entity controlled by EIG Global Energy Partners on April 9, Friday.
The equity stake being sold for 46.5 billion riyals ($12.4 billion) is in Aramco Oil Pipelines Company, a recently established wholly owned subsidiary of Aramco.
“Saudi Aramco will at all times retain title to, and operational control of, the pipeline network” the company said in a bourse filing.
“This transaction will not impose any restrictions on Saudi Aramco’s actual crude oil production volumes that are subject to production decisions by the Kingdom of Saudi Arabia,” the company said in a bourse filing to the Saudi Stock Exchange (Tadawul) on Sunday.
The transaction is expected to close “as soon as practicable”, including any required merger control and related approvals.
“Upon closing of the transaction, the purchaser will pay Saudi Aramco $12.4 billion for a 49 percent equity interest in Aramco Oil Pipelines Company,” the statement said.
Immediately prior to completion of the transaction, Saudi Aramco will lease for a 25-year period the usage rights in its stabilised crude oil pipelines network to Aramco Oil Pipelines Company.
“Concurrently, Aramco Oil Pipelines Company will grant Saudi Aramco the exclusive right to use, operate and maintain the pipeline network during the 25-year period in exchange for a quarterly, volume-based tariff payable by Saudi Aramco,” said the firm.
The tariff will be backed by minimum volume commitments.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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