Aramco signs an $11 billion Jafurah agreement with BlackRock-led consortium
Saudi Aramco announced on Thursday that it had signed a $11 billion lease-and-leaseback agreement with Global Infrastructure Partners, a part of BlackRock. The consortium was led by Global Infrastructure Partners.
The Saudi company said in a press release that under the agreement, Jafurah Midstream Gas Company, a newly-formed subsidiary, will lease the development and usage rights of the Jafurah Field Gas Plant, and the Riyas NGL Fractionation Facility for 20 years and then lease them back Aramco.
This latest financial arrangement, similar to borrowing, allows Gulf oil-producing countries to raise money for diversification of their economies, while offering investors a steady revenue stream.
The $100 billion Jafurah Project, which is potentially the largest shale-gas project outside of the United States, will be central to Aramco’s ambitions to become the world’s leading natural gas producer and to increase its production capacity from 2021 to 2030 by 60%.
Jafurah contains 229 trillion standard cubic feet of raw natural gas and 75 billion stock tank barrels of condensate.
Aramco announced that it will own 51% of JMGC. The remaining 49% will be held by investors, led by GIP.
Two sources said that the state oil company was allegedly stealing from consumers in July.
Close to $10 billion in funding
BlackRock group invests in Jafurah’s infrastructure.
(source: Reuters)
