Aramco Signs $11 Billion Deal with BlackRock-Led Consortium

Jafurah Midstream Gas Company (JMGC) will assume development and operating rights for the Jafurah Field Gas Processing Facility and Riyas NGL Fractionation Plant, then lease them back to Aramco for a 20-year term.

Aramco, one of the world's leading integrated energy and chemicals companies, has signed an USD 11 billion lease and leaseback agreement covering Jafurah gas processing facilities with an international investor consortium led by funds managed by Global Infrastructure Partners (GIP) (within BlackRock).

Jafurah is the largest non-associated gas field in the Kingdom of Saudi Arabia, estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion barrels of stock tank oil equivalent. The field is a key part of Aramco's plans to increase gas production capacity by 60% between 2021 and 2030. The region is an important component of Aramco's strategy to increase gas output by 60% over the 2021–2030 period.

Under the agreement, the newly established Jafurah Midstream Gas Company (JMGC) will assume development and operating rights for the Jafurah Field Gas Processing Facility and Riyas NGL Fractionation Plant and subsequently lease them back to Aramco for a 20-year period. JMGC will receive a tariff fee from Aramco in exchange for granting Aramco exclusive rights to receive, process, and treat raw gas from Jafurah.
Aramco will hold a 51% majority stake in JMGC, while the remaining 49% will be held by investors led by GIP. The transaction will not impose any restrictions on Aramco's production volumes, and is expected to close shortly after completion of customary closing conditions.

Amin H. Nasser, President and Chief Executive Officer of Aramco, stated: "Jafurah is one of the cornerstones of our ambitious gas expansion programme, and the consortium's participation, led by GIP, as an investor in a critical element of our unconventional gas operations demonstrates the project's strong value potential. This foreign direct investment also demonstrates how attractive Aramco's long-term strategy is to the international investment community. With Jafurah preparing to begin first-phase production this year, development of subsequent phases is progressing as planned. We look forward to Jafurah playing a major role by supplying feedstock to the petrochemicals sector and meeting the energy needs of new growth areas such as artificial intelligence data centres in the Kingdom of Saudi Arabia."

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