Abu Dhabi’s state-owned Mubadala joined the group looking to purchase Saudi Aramco’s stake in newly-formed crude oil pipeline entity, Arabian Business’s sister publication Oil & Gas Middle East reported on Sunday.
Mubadala Investment Company joined the EIG Global Energy Partners-led group for the deal that is expected to help Saudi Aramco monetise its pipeline assets.
“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 transaction, which in turn will help maximize returns for our shareholders,” said Aramco president and CEO Amin Nasser.
Oil & Gas reported that the deal worth $12.4 billion agrees ownership of 49 percent of the pipeline, Saudi Aramco, however, will retain a 51 percent stake in the new company, which is valued at around $25.3 billion. The new entity will also provide Saudi Aramco with the exclusive right to use, transport through and maintain the pipeline network for a 25-year period.
At the end of May, Mubadala dumped $500 million into one of Europe’s biggest pet care firms. It has also recently invested in Berlin-based digital insurance company wefox.
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