“It’s a great deal for Aramco, but also a new kind of investment strategy, in that it is “giving up” much more in terms of investor access to information, control over operations than an IPO does. It is a real partnership, a long-term effort with outsiders, which is an entirely new level of trust outside of the firm and the government.”
–Karen Young, resident scholar at the American Enterprise Institute in Washington, commenting on the recent $12.4 billion lease agreement signed between an EIG-led consortium to acquire a 49% equity stake in Aramco Oil Pipelines Co., a newly formed entity. The deal gives EIG rights to 25-years of tariff payments for oil transported through Aramco’s stabilized crude oil pipeline network. [Yahoo Finance]
