Aramco Secures $11B Jafurah Deal with Global Consortium
- Aramco signs an $11 billion lease and leaseback deal for Jafurah gas facilities.
- Jafurah contains 229 trillion cubic feet of raw gas and 75 billion barrels of condensate.
- Aramco aims to increase gas production capacity by 60% from 2021 to 2030.
- Aramco holds a 51% stake in the new subsidiary, with GIP-led investors holding 49%.
Deal Overview
Aramco has entered into an $11 billion lease and leaseback agreement for its Jafurah gas processing facilities with a consortium of international investors led by Global Infrastructure Partners (GIP). This transaction involves the newly-formed Jafurah Midstream Gas Company (JMGC), which will lease development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility, leasing them back to Aramco for 20 years.
Jafurah Gas Field
Jafurah is the largest non-associated gas development in Saudi Arabia, containing an estimated 229 trillion standard cubic feet of raw gas and 75 billion Stock Tank Barrels of condensate. It plays a crucial role in Aramco's strategy to boost gas production capacity by 60% between 2021 and 2030 to meet increasing demand.
Investment Structure
Aramco will maintain a 51% majority stake in JMGC, while the remaining 49% will be held by investors led by GIP. The transaction is expected to close soon, subject to customary conditions, and will not restrict Aramco's production volumes.
Strategic Implications
This deal supports the optimization of Aramco's assets and reflects a positive outlook for gas demand in Saudi Arabia. The investment highlights the value creation potential of Aramco's ongoing capital investment program and aims to capture additional value from the development of the Jafurah gas field.
Source: Aramco