BlackRock-managed fund buys stake in Saudi-Bahrain pipeline
Adds details on deal in paragraphs 3, 9-10, Bapco Energies CEO comment in paragraph 6, context in paragraphs 3-5, 7-8
DUBAI, Sept 11 (Reuters) -A BlackRock-managed fund BLK.N has bought a minority stake in a pipeline linking Saudi Arabia and Bahrain from Bahrain state oil firm Bapco Energies, the two firms said on Wednesday, as the small Gulf state tries to extract value from its energy assets.
A fund managed by BlackRock's Diversified Infrastructure business bought the stake in Saudi Bahrain Pipeline Company (SBPC), they said in a joint statement.
No value was disclosed for the deal, which marks Bapco Energies' first asset monetization and is set to support Bahrain, the region's most indebted economy and among its smallest oil producers.
Bahrain has been introducing reforms to make doing business easier, create more jobs, and attract foreign investment to boost economic growth.
Earlier this month, it introduced a Domestic Minimum Top-up Tax, effective Jan. 1, 2025, that will ensure a minimum 15% tax rate on profits for certain multinational enterprises.
"We are implementing a range of projects and initiatives that support comprehensive national development and capitalizing on our asset and operations management," Bapco Energies' CEO Mark Thomas said in the statement.
The deal follows similar moves by private equity firms targeting pipeline assets in neighbouring Saudi Arabia and the UAE, where in 2019 BlackRock and KKR KKR.N bought a 40% stake in the entity that leases ADNOC's oil pipelines for $4 billion.
In April, the stake was sold to Abu Dhabi investor Lunate.
BlackRock and Bapco Energies said the energy firm will retain a majority stake and governance over SBPC, which owns a portion of the 112-km pipeline supplying crude oil from Saudi Aramco to Bapco Refining, Bahrain's national refinery.
The BlackRock-managed fund and Bapco Energies have also signed an MoU "to explore collaboration on future Bahraini infrastructure and decarbonization projects," the firms said.
Reporting by Yousef Saba and Federico Maccioni; Editing by Jason Neely and Alexander Smith
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
