Aramco to up stake in EIG's MidOcean to 49%, fund new stake in Peru LNG
DUBAI, Sept 16 (Reuters) -Saudi Aramco will increase its stake in liquefied natural gas firm MidOcean Energy to 49% and fund its acquisition of a new 15% stake in Peru LNG from Hunt Oil Company, MidOcean said on Monday.
The Saudi oil giant agreed to buy a minority stake in MidOcean from EIG for $500 million last year, its first foray into LNG abroad, without disclosing the stake's size.
Aramco is seeking to strengthen its position in the LNG market, which is set to grow by 50% globally by 2030, especially in the United States where LNG capacity is set to almost double over the next four years.
MidOcean did not disclose how much it is paying for the stake in Peru LNG (PLNG) or the value of Aramco's funding.
Aramco, representatives for EIG and Hunt did not immediately respond to emailed requests for comment.
MidOcean and Hunt will each hold a 35% stake in PLNG when the deal closes, MidOcean said in its statement.
"Aramco's further investment in MidOcean strengthens MidOcean and Aramco's position in the global LNG market and will provide both parties with further exposure to the only LNG export project in South America," MidOcean said.
Aramco will hold an indirect stake of 17.2% in PLNG. Hunt continues to hold a 25.2% holding in the Camisea upstream project in Peru, where it has been invested since 2000, MidOcean said.
Reporting by Yousef Saba; Editing by Kirsten Donovan
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