Saudi Aramco to Acquire Stake in EIG's MidOcean Energy for LNG Expansion
(Reuters) — Saudi Arabia's oil group Aramco said on Thursday it had agreed to acquire a strategic minority stake in LNG company MidOcean Energy for $500 million, with an option to increase the size of the shareholding.
MidOcean is owned and managed by U.S. investment firm EIG Partners, which led a consortium to buy a 49% stake in Aramco's oil pipelines business in 2021, a deal that raised $12.4 billion for Aramco.
"This is an important step in Aramco's strategy to become a leading global LNG player," Aramco Upstream President Nasir K. al-Naimi said in a statement, which did not disclose the size of the stake.
"MidOcean Energy is well-equipped to capitalize on rising LNG demand, and this strategic partnership reflects our willingness to work with leading international players," he added.
MidOcean is in the process of buying interests in four LNG projects in Australia as part of its growth strategy to create a global LNG business, the statement said.
In October 2022, MidOcean said it agreed with Tokyo Gas Co to buy the Japanese company's stakes in a portfolio of four Australian LNG projects for $2.15 billion.
Sources told Reuters in July EIG was tapping international investors, particularly in the Middle East, to buy into MidOcean, which is part of a consortium taking over Australia's Origin Energy for $10.2 billion.
Aramco President and Chief Executive Amin Nasser said the deal strengthened Aramco's relationship with EIG and "gas will be important in meeting the world's rising need for secure, accessible and more sustainable energy".
In March, Nasser had said that Aramco was actively looking at LNG opportunities globally.
Aramco's acquisition of the MidOcean stake is subject to regulatory approvals among other conditions.
"While our initial focus is on the announced transactions in Australia, we believe the opportunity set is global," EIG Chairman and Chief Executive Blair Thomas said in the statement.
Related News
Related News
- 1,000-Mile Pipeline Exit Plan by Hope Gas Alarms West Virginia Producers
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Greenpeace Ordered to Pay $667 Million to Energy Transfer Over Dakota Access Pipeline Protests
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Boardwalk’s Texas Gas Launches Open Season for 2 Bcf/d Marcellus-to-Louisiana Pipeline Expansion
- New Alternatives for Noise Reduction in Gas Pipelines
- Construction Begins on Ghana's $12 Billion Petroleum Hub, But Not Without Doubts
- Missouri Loses Control Over 1.5 Million-Mile Gas Pipeline Network as Feds Step In
- South Dakota Governor Signs Bill Banning Eminent Domain for Carbon Pipeline
- Woodside May Delay Final Investment Decision on Louisiana LNG to Q2, CEO Says
Comments