SEATTLE (Oil Monster): A consortium led by Global Infrastructure Partners, a division of BlackRock, has agreed to lease and leaseback Saudi Aramco's gas processing facilities in Jafurah for $11 billion. The transaction relates to midstream assets that are connected to the processing facilities.
Subject to the customary closing conditions being met, the deal is anticipated to be completed shortly. Aramco will be able to maximize its resources and increase the value of the development of the Jafurah gas field if the sale is completed successfully. Moreover, it will enhance the current partnership between BlackRock and Aramco.
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The agreement states that the Riyas natural gas liquids fractionation facility and the Jafurah field gas plant will be developed and used by a newly established subsidiary, Jafurah Midstream Gas Company (JMGC). For 20 years, JMGC will lease these assets back to Aramco. Aramco will own 51 percent of JMGC, with GIP-led investors holding the remaining 49 percent.
The largest non-associated gas project in the nation, the Jafurah gas development, is expected to contain 75 billion stock tank barrels of condensate and 229 trillion standard cubic feet of raw gas.
Phase one production of Jafurah is anticipated to begin this year. Subsequent phase development is proceeding as planned.
