Aramco concludes an investment deal worth $11 billion in the Jafoura project
Saudi Aramco, one of the world’s leading integrated companies in the field of energy and chemicals, announced today the completion of a giant investment agreement worth $11 billion with a lease and lease-back system for gas processing facilities in Al-Jafoura.
This came with a coalition of international investors, led by funds managed by "Global Infrastructure Partners"known as "G.I.B" And affiliated with the company "Black Rock"Saudi Aramco.
The coalition of investors led by… "G.I.B" From: Hassana Investment Company, the Arab Energy Fund, and"Investcorp Aberdeen Infrastructure Partners"in addition to other institutional investors from North and Southeast Asia and the Middle East.
Business Development
Saudi Aramco President and Chief Executive Officer, Eng. Amin bin Hassan Al Nasser, said: "This deal with GIB and its investment consortium is considered one of the pioneering deals, and confirms the great international confidence in our business development strategy, and contributes to achieving maximum value for investors.".
He added that The dealis a reflection of the improvement of the investment environment in the Kingdom and its international attractiveness within the framework of Vision 2030."
He continued: "We are pleased to work with GIB and its investment consortium in the Al-Jafoura project, which constitutes a very strong boost to our large plan to increase the total capacity for sales gas production, which contributes to achieving the Kingdom’s ambitions for growth in multiple sectors including energy, artificial intelligence, and major industries such as petrochemicals."
Gas transportation and processing
The Chairman and CEO of the company said "Global Infrastructure Partners"Bayo Ogunlesi: "We are pleased to complete this investment in Al-Jafoura Gas Transmission and Processing Company and the natural gas infrastructure in the Kingdom"
He added: "Today’s announcement comes within the framework of the long history of BlackRock and GIB’s partnership with Saudi Aramco to continue supporting development in the Kingdom, as well as meeting the growing demand for clean energy at affordable prices in all global markets."
Details of the deal
As part of the deal, Al Jafurah Gas Transportation and Processing Company (JMGC), a newly created subsidiary of Saudi Aramco, will lease the development and use rights for the Jafurah gas plant, the Rias NGL Fractionation Facility, and lease them back to Saudi Aramco under a 20-year agreement.
GMGC will receive a tariff paid by Saudi Aramco in exchange for granting it the exclusive right to receive and process the raw gas extracted from Jafurah.
The deal does not impose any restrictions on Saudi Aramco’s production quantities, which will retain a 51% ownership stake in GMGC, while investors led by (GIB) will retain a 49% stake. The remaining.
Saudi Aramco is moving forward with the implementation of the Al-Jafoura project, the largest non-associated gas development project in the Kingdom, which constitutes the cornerstone of the company’s strategic plan for expansion in the gas sector, which focuses on meeting the increasing demand for natural gas in the Kingdom while investing in global liquefied natural gas markets.
The reserves of the Al-Jafoura field are estimated at about 229%. One trillion standard cubic feet of raw gas, and 75 billion barrels of condensate.
Production is expected to begin in 2025 and gradually rise to 2 billion standard cubic feet of sales gas per day, 420 million standard cubic feet per day of ethane, and about 630 thousand barrels per day of high-value liquids by 2030.
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