BlackRock, through its Global Infrastructure Partners unit, has finalized a significant $11 billion deal with Saudi Aramco to enhance gas infrastructure in the region.
Key Deal Details
The agreement between BlackRock and Saudi Aramco concerns the Jafurah natural gas field in Saudi Arabia. A new entity, Jafurah Midstream Gas Company, will be formed, with Aramco holding a 51% stake while a GIP-led consortium, including BlackRock, secures 49%.
Impact on Saudi Arabia's Economy
This agreement represents a significant influx of foreign investment into the country’s gas infrastructure and is set to enhance the energy sector landscape. It involves a 20-year lease on the Jafurah Gas Plant and Riyas NGL Fractionation Facility.
Industry Reactions
Amin H. Nasser, President & CEO of Aramco, noted: '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.'
The $11 billion deal between BlackRock and Saudi Aramco underscores growing interest in energy investments in Saudi Arabia and reflects the country’s strategy to collaborate with international partners.
