Oil conglomerate Aramco has signed a $11 billion leaseback deal with a group of investors led by Global Infrastructure Partners, as per an official press release dated August 14. The agreement will give Aramco exclusive rights to use the Jafurah field gas plant and another key fractionation facility.
The Jafurah gas plant is one of the largest gas developments in Saudi Arabia and is a part of the oil and gas company’s strategy to improve gas production by 60% to cater to rising demand.
The new deal forms another agreement between BlackRock and Aramco, as Global Infrastructure Partners is owned by the asset management company.
Aramco to own 51% of JPMC in the leaseback deal
Both parties will share ownership of the Jafurah Midstream Gas Company (JPMC), a subsidiary created to carry out the deal, of which Aramco will own 51%.
JPMC will give lease-back rights to Aramco, and in exchange will receive a tariff for giving exclusive rights to Aramco process gas from Jafurah.
“Jafurah is a cornerstone of our ambitious gas expansion program, and the GIP-led consortium’s participation as investors in a key component of our unconventional gas operations demonstrates the attractive value proposition of the project,” Aramco President Amin H. Nasser.
Nasser also said that Jafurah will play a key role in supplying energy for AI data centres.
Source: Google Finance
“Today’s announcement builds upon BlackRock and GIP’s longstanding relationship with Aramco to serve growing market needs for cleaner fuels, energy security and energy affordability,” said GIP Chairman Bayo Ogunlesi.
As reported earlier by Coinheadlines, BlackRock owns 49% of Saudi Aramco’s natural gas pipelines, a stake it acquired in 2021 for $15.5 billion with a consortium of investors led by the investment firm, with Saudi Aramco holding the remaining 51%.