Saudi Aramco has signed an $11 billion lease and leaseback agreement for its Jafurah gas processing facilities with a consortium of international investors led by Global Infrastructure Partners (GIP), a BlackRock unit, the state oil giant said on Friday.
The deal involves the Kingdom’s largest non-associated gas development, which contains an estimated 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate.
Jafurah is central to Aramco’s plan to boost gas production capacity by 60% between 2021 and 2030.
Under the transaction, a newly formed subsidiary called Jafurah Midstream Gas Company (JMGC) will lease development and usage rights for the Jafurah Field Gas Plant and Riyas NGL Fractionation Facility, then lease them back to Aramco for 20 years.
Aramco will retain a 51% majority stake in JMGC, with the remaining 49% held by the GIP-led investor group.
The deal places no restrictions on Aramco’s production volumes and is expected to close subject to customary conditions.
“Jafurah is a cornerstone of our ambitious gas expansion program,” Aramco President and CEO Amin H. Nasser said in a statement.
He noted the investment demonstrates international confidence in the project as it prepares to begin phase one production this year.
Nasser said the gas field will serve as a key feedstock provider to the petrochemicals sector and supply energy for new growth sectors, including AI data centers in the Kingdom.
GIP Chairman and CEO Bayo Ogunlesi said the investment deepens the firm’s partnership with Aramco in Saudi Arabia’s natural gas infrastructure, building on BlackRock’s existing relationship with the company.
The transaction attracted significant global investor interest, with co-investors including leading institutional investors from Asia and the Middle East.
When completed, the deal is designed to optimize Aramco’s assets and capture additional value from the Jafurah development.
The agreement builds on BlackRock’s previous involvement with Aramco, including its co-leadership of a consortium that made a minority investment in Aramco Gas Pipelines Company in 2022.
Business News Asia
