The Abu Dhabi-based Mubadala Investment Co. is considering becoming part of an investment group with an interest in Saudi Aramco’s oil pipelines—a deal that is expected to be funded by a loan of approximately $10.5 billion. One spokesperson for Mubadala confirmed that the sovereign wealth fund is currently in talks with U.S. investor EIG Global Energy Partners LLC, the lead member of the consortium.
While Mubadala is yet to join the consortium, Aramco has successfully organized a loan from EIG and prominent banks such as BNP Paribas SA, Citigroup Inc., HSBC Holdings Plc, and Mizuho Financial Group Inc, with the deal being confirmed publicly last Friday. In what is a $12.4 billion deal, the investors are expected to purchase 49% of Aramco Oil Pipelines Co., while Aramco will own the rest of the shares and retain ownership of the pipelines themselves.
The Aramco Oil Pipeline Deal is part of the Saudi Arabian government’s plan to open the nation’s economy to more foreign investment as well as diversify the local economy. This deal is also an effort to stimulate economic growth following the damage caused by the coronavirus lockdowns and the subsequent decline in oil prices.
