Slaughter and May is advising BlackRock’s Global Energy & Power Infrastructure Fund III on its participation in a global consortium led by BlackRock Real Assets (“BlackRock”) and Hassana Investment Company (“Hassana”), the investment management arm of the General Organization for Social Insurance (GOSI) in Saudi Arabia, to purchase an equity stake in Aramco Gas Pipelines Company for $15.5 billion as part of a lease and leaseback deal relating to the gas pipeline network of the Saudi Arabian Oil Company (“Aramco”).
As part of the transaction, a newly-formed subsidiary, Aramco Gas Pipelines Company, will lease usage rights in Aramco’s gas pipelines network and lease them back to Aramco for a 20-year period. In return, Aramco Gas Pipelines Company will receive a tariff payable by Aramco for the gas products that will flow through the network, backed by minimum commitments on throughput. Aramco will hold a 51% majority stake in Aramco Gas Pipeline Company and sell a 49% stake to investors led by BlackRock and Hassana.
The transaction is expected to close as soon as practicable, subject to customary closing conditions, including any required merger control and related approvals.