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Korea Herald
2 days ago
- Business
- Korea Herald
Aramco signs $11 billion Jafurah midstream deal with international consortium led by Global Infrastructure Partners
DHAHRAN, Saudi Arabia, Aug. 15, 2025 /PRNewswire/ -- Aramco, one of the world's leading integrated energy and chemicals companies, has signed an $11 billion lease and leaseback deal involving its Jafurah gas processing facilities with a consortium of international investors, led by funds managed by Global Infrastructure Partners (GIP), a part of BlackRock. Jafurah is the largest non-associated gas development in the Kingdom of Saudi Arabia, estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion Stock Tank Barrels of condensate. It is a key component in Aramco's plans to increase gas production capacity by 60% between 2021 and 2030, to meet rising demand. As part of the transaction a newly-formed subsidiary, Jafurah Midstream Gas Company (JMGC), will lease development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility, and lease them back to Aramco for a period of 20 years. JMGC will receive a tariff payable by Aramco in exchange for granting Aramco the exclusive right to receive, process and treat raw gas from Jafurah. Aramco will hold a 51% majority stake in JMGC, with the remaining 49% held by investors led by GIP. The transaction, which will not impose any restrictions on Aramco's production volumes, is expected to close as soon as practicable, subject to customary closing conditions. Amin H. Nasser, Aramco President & CEO, said: "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. This foreign direct investment into the Kingdom also highlights the appeal of Aramco's long-term strategy to the international investment community. As Jafurah prepares to start phase one production this year, development of subsequent phases is well on track. We look forward to Jafurah playing a major role as a feedstock provider to the petrochemicals sector, and supplying energy required to power new growth sectors, such as AI data centers, in the Kingdom." Bayo Ogunlesi, Chairman and CEO of GIP, said: "We are pleased to deepen our partnership with Aramco with our investment in Saudi Arabia's natural gas infrastructure, a key pillar of global natural gas markets. Today's announcement builds upon BlackRock and GIP's longstanding relationship with Aramco to serve growing market needs for cleaner fuels, energy security and energy affordability." The opportunity to invest in one of the region's most significant natural gas developments garnered significant interest from investors worldwide. Co-investors in the transaction include leading institutional investors from Asia and the Middle East. When completed, the transaction will support the optimization of Aramco's assets and capture additional value from the development of the Jafurah gas field. GIP's mid-market infrastructure equity team, which invests in diversified and contracted mid-market infrastructure assets and businesses around the world, has a robust, long-term track record of successful investments in the Middle East. This investment also builds upon the strong existing relationship between Aramco and BlackRock. In 2022, BlackRock co-led a consortium of investors in a separate minority investment in Aramco Gas Pipelines Company. About Aramco As one of the world's leading integrated energy and chemicals companies, our global team is dedicated to creating impact in all that we do, from providing crucial oil supplies to developing new energy technologies. We focus on making our resources more dependable, more sustainable and more useful, helping to promote growth and productivity around the world. About Global Infrastructure Partners (GIP) Global Infrastructure Partners (GIP), a part of BlackRock, is a leading infrastructure investor that specializes in investing in, owning and operating some of the largest and most complex assets across the energy, transport, digital infrastructure and water and waste management sectors. With energy pragmatism central to our investment thesis, we are well positioned to support the global energy transition. GIP's scaled platform has over $183 billion in assets under management. We believe that our focus on real infrastructure assets, combined with our deep proprietary origination network and comprehensive operational expertise, enables us to be responsible stewards of our clients' capital and to create positive economic impact for communities. For more information, visit Disclaimer The press release contains forward-looking statements. All statements other than statements relating to historical or current facts included in the press release are forward-looking statements. Forward-looking statements give the Company's current expectations and projections relating to its capital expenditures and investments, major projects, upstream and downstream performance, including relative to peers. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target," "believe," "expect," "aim," "intend," "goal," "may," "anticipate," "estimate," "plan," "project," "can have," "likely," "should," "could," and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the Company's actual results, performance or achievements to be materially different from the expected results, performance, or achievements expressed or implied by such forward-looking statements, including the following factors: global supply, demand and price fluctuations of oil, gas and petrochemicals; global economic conditions; competition in the industries in which Saudi Aramco operates; climate change concerns, weather conditions and related impacts on the global demand for hydrocarbons and hydrocarbon-based products; risks related to Saudi Aramco's ability to successfully meet its ESG targets, including its failure to fully meet its GHG emissions reduction targets by 2050; conditions affecting the transportation of products; operational risk and hazards common in the oil and gas, refining and petrochemicals industries; the cyclical nature of the oil and gas, refining and petrochemicals industries; political and social instability and unrest and actual or potential armed conflicts in the MENA region and other areas; natural disasters and public health pandemics or epidemics; the management of Saudi Aramco's growth; the management of the Company's subsidiaries, joint operations, joint ventures, associates and entities in which it holds a minority interest; Saudi Aramco's exposure to inflation, interest rate risk and foreign exchange risk; risks related to operating in a regulated industry and changes to oil, gas, environmental or other regulations that impact the industries in which Saudi Aramco operates; legal proceedings, international trade matters, and other disputes or agreements; and other risks and uncertainties that could cause actual results to differ from the forward-looking statements in this press release, as set forth in the Company's latest periodic reports filed with the Saudi Exchange. For additional information on the potential risks and uncertainties that could cause actual results to differ from the results predicted please see the Company's latest periodic reports filed with the Saudi Exchange. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future. The information contained in the press release, including but not limited to forward-looking statements, applies only as of the date of this press release and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to the press release, including any financial data or forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law or regulation. No person should construe the press release as financial, tax or investment advice. Undue reliance should not be placed on the forward-looking statements.
Leaders
2 days ago
- Business
- Leaders
Aramco Signs $11 Billion Jafurah Midstream Deal
Aramco, one of the world's leading integrated energy and chemicals companies, has signed an $11 billion lease and leaseback agreement for its Jafurah natural-gas processing facilities. The deal is with a consortium of international investors led by funds managed by Global Infrastructure Partners (GIP), part of BlackRock. Jafurah Jafurah is the largest non-associated gas development in Saudi Arabia, with an estimated 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate. The project plays a central role in Aramco's plan to boost gas production capacity by 60% between 2021 and 2030 to meet rising domestic and global demand. Transaction Structure Under the agreement, the Jafurah Midstream Gas Company (JMGC) will lease development and usage rights for: The Jafurah Field Gas Plant The Riyas NGL Fractionation Facility These assets will then be leased back to Aramco for 20 years. JMGC will collect a tariff from Aramco in exchange for the exclusive right to receive, process, and treat raw gas from Jafurah. Aramco will retain a 51% majority stake in JMGC, while the remaining 49% will be owned by the GIP-led investor group. The deal is expected to close soon, pending standard closing conditions, and will not restrict Aramco's production volumes. Leadership Perspectives Aramco President and CEO Amin Nasser emphasized the project's significance: 'Jafurah is a cornerstone of our ambitious gas expansion program… This foreign direct investment into the Kingdom also highlights the appeal of Aramco's long-term strategy to the international investment community.' He noted that phase one production is set to start this year, with later phases progressing as planned. Jafurah is expected to be a key feedstock provider for the petrochemicals sector and supply energy for emerging industries such as AI data centers. GIP Chairman and CEO Adebayo Ogunlesi added: 'Today's announcement builds upon BlackRock and GIP's longstanding relationship with Aramco to serve growing market needs for cleaner fuels, energy security, and energy affordability.' Global Investor Interest The investment opportunity in Jafurah attracted widespread interest from global investors, with co-investors including top institutional funds from Asia and the Middle East. The transaction will help Aramco optimize assets and unlock further value from Jafurah's development. GIP's mid-market infrastructure equity team has a proven track record of successful investments in the Middle East. This deal strengthens the existing relationship between Aramco and BlackRock, following a 2022 minority investment by BlackRock in the Aramco Gas Pipelines Company. Related Topics: CST, Aramco Digital Launch AI-Powered Crowd Management Trial at Holy Sites China Is Major Market for Saudi Aramco: CEO Saudi Aramco Records $106bn Profits in 2024 Short link : Post Views: 13
The Sun
2 days ago
- Business
- The Sun
Aramco signs $11 billion Jafurah gas deal with BlackRock-led group
SAUDI ARAMCO signed an $11 billion lease and leaseback agreement involving its Jafurah gas processing facilities with a consortium led by Global Infrastructure Partners (GIP), part of BlackRock, it said on Thursday. Under the deal, a newly formed subsidiary, Jafurah Midstream Gas Company (JMGC), will lease development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility, and lease them back to Aramco for 20 years, the Saudi company added in a statement. This is the latest in a series of financial arrangements, akin to borrowing, that allow Gulf oil producing countries to raise money to diversify their economies while promising investors a stable revenue stream. The $100 billion Jafurah project, potentially the biggest shale gas project outside the United States, is central to Aramco's ambitions to become a major global player in natural gas and boost its gas production capacity by 60% by 2030 from 2021 levels. Jafurah is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion Stock Tank Barrels of condensate. Aramco will hold a 51% majority stake in JMGC, with the remaining 49% held by investors led by GIP, Aramco said. In July, two sources told Reuters the state oil company was close to securing around $10 billion from a BlackRock-led group to invest in Jafurah's infrastructure. - Reuters
The Star
2 days ago
- Business
- The Star
Saudi Aramco signs 11 bln USD lease-and-leaseback deal for Jafurah gas assets
RIYADH, Aug. 14 (Xinhua) -- Saudi Aramco announced Thursday the signing of an 11 billion U.S. dollar lease-and-leaseback agreement for its Jafurah gas processing assets with a consortium of international investors, marking a major inflow of foreign direct investment into the Kingdom's energy sector. The deal is led by funds managed by Global Infrastructure Partners (GIP), a part of New York-based global investment management corporation BlackRock, the company revealed in a statement. Jafurah is the largest non-associated gas development in Saudi Arabia. It is a key component in Aramco's plans to increase gas production capacity by 60 percent between 2021 and 2030, to meet rising demand. As part of the transaction, a newly-formed subsidiary, Jafurah Midstream Gas Company (JMGC), will lease development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility, and lease them back to Aramco for 20 years. JMGC will receive a tariff payable by Aramco in exchange for granting Aramco the exclusive right to receive, process, and treat raw gas from Jafurah. Aramco will hold a 51 percent majority stake in JMGC, with the remaining 49 percent held by investors led by GIP. The transaction, which will not impose any restrictions on Aramco's production volumes, is expected to close as soon as practicable, subject to customary closing conditions.
The National
2 days ago
- Business
- The National
Saudi Aramco signs $11bn Jafurah deal with BlackRock-led consortium
Saudi Aramco on Thursday signed an $11 billion lease and leaseback agreement for midstream gas-processing plants at its Jafurah field with a consortium led by BlackRock's Global Infrastructure Partners. Under the transaction, a newly formed subsidiary called the Jafurah Midstream Gas Company will lease development and use rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility, and then lease them back to Aramco for a 20-year period. Aramco will hold a 51 per cent stake in the newly formed JMGC subsidiary, with investors led by GIP holding the remaining 49 per cent. The companies said the deal is expected to be closed 'as soon as practicable', subject to customary conditions. Jafurah, the largest non-associated gasfield in Saudi Arabia, is a key player in Aramco's ambitions to increase gas production capacity by 60 per cent between 2021 and 2030. Jafurah is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate. The company has said it anticipates total overall life cycle investment at the project to pass $100 billion. 'Jafurah is a cornerstone of our ambitious gas expansion programme, 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,' said Aramco chief executive Amin Nasser. The Jafurah basin, with about 200 trillion standard cubic feet of gas in place, is the largest liquid-rich shale gas play in the Middle East. Jafurah is an unconventional gasfield, which means energy resources are trapped inside layers of rock that require special equipment to access. 'We look forward to Jafurah playing a major role as a feedstock provider to the petrochemicals sector, and supplying energy required to power new growth sectors, such as AI data centres, in the kingdom,' Mr Nasser said. Co-investors in the deal included some in the Middle East and Asia, the companies said. It is expected to capture more from the development of the Jafurah gasfield and support optimisation of Aramco's assets, they said. The companies also said the investment adds to the strong relationship between Aramco and BlackRock. 'Today's announcement builds upon BlackRock and GIP's long-standing relationship with Aramco to serve growing market needs for cleaner fuels, energy security and energy affordability,' said Bayo Ogunlesi, GIP chairman and chief executive.
