Saudi Arabia's oil giant, Saudi Aramco, is in advanced talks to sell up to a 49% stake of its oil pipelines to a consortium for between $10 billion and $15 billion, according to those familiar with the matter, the Wall Street Journal reported on Tuesday.
The deal to transfer a minority stake to a group that includes US, Chinese and local investors is expected to be announced as soon as this week.
Saudi Aramco, which has assured it remains in operational control of the assets by holding a majority stake in the pipeline business, is in talks to sell the minority stake to a group of investors that could include US buyout giant Apollo Global Management Inc., energy investment firm EIG Global Energy Partners, Chinese infrastructure fund Silk Road Fund, and China Reform Fund Management Co., along with Saudi pension fund companies.
Should the parties agree, a joint venture will be set up, which will receive proceeds from Aramco for oil transit through the pipelines. However, further details of the revenue-sharing agreement have not yet been released.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr