Saudi Arabian Oil Co. (Saudi Aramco) is negotiating the sale of up to 49% of its pipeline assets to a consortium of American, Chinese and local investors, Interfax-Ukraine reports.
According to sources, the deal could range from $10 billion to $15 billion. Thus, the Saudi Aramco pipelines will be valued at more than $20 billion in total.
Among the investors participating in the negotiations are the American fund Apollo Global Management Inc., the investment company EIG Global Energy Partners, the Chinese infrastructure investment fund Silk Road Fund, and the private equity fund China Reform Fund Management Co. and Saudi pension funds.
The parties may announce the deal as early as this week.
Saudi Aramco intends to maintain control of its pipelines, the sources say. As part of the deal under discussion, a joint venture could be created that will receive payments for the transportation of Saudi oil through pipelines.
Saudi Aramco operates over 90 pipelines throughout Saudi Arabia.