- Aramco agrees to acquire strategic minority stake in MidOcean Energy for $500 million, with option to increase stake
- Strategic partnership enables Aramco to take advantage of international LNG opportunities
Aramco, one of the world's leading integrated energy and chemical companies, has signed a definitive agreement to acquire a strategic minority stake in MidOcean Energy for $500 million. MidOcean Energy is a liquefied natural gas (LNG) company founded and managed by EIG, a leading institutional investor in the global energy and infrastructure sector.
Midocean Energy is currently in the process of acquiring interests in four LNG projects in Australia and has a growth strategy to build a diversified global LNG business. The strategic partnership with MidOcean Energy marks Aramco's first international investment in LNG.
The agreement builds on Aramco's relationship with EIG, which is part of a consortium that acquired a 49% stake in Aramco's subsidiary Aramco Oil Pipelines Company in 2021.
Completion of the transaction is subject to closing conditions, including regulatory approvals. Aramco also has the option to increase its stake in Midocean Energy and related rights in the future.
Amin H. Nasser, Aramco President and CEO“We are pleased to strengthen our strategic partnership with EIG through this acquisition, which marks Aramco's first international investment in LNG.”As the world continues its energy transition journey, gas is becoming more and more popular in a variety of industries. LNG is expected to see strong demand-led growth as it becomes an important fuel and raw material in the world. We believe gas will be critical to meeting the world's growing need for safe, accessible and more sustainable energy. ”
Nasir K. Al-Naimi, Aramco Upstream Presidentsays: “This is an important step in Aramco's strategy to become the world's leading LNG player. We see great opportunity in this market with structural and long-term growth prospects. MidOcean Energy is well-equipped to take full advantage of the growing demand for LNG, and this strategic partnership reinforces our ambition to work with major international players to identify and develop new opportunities at a global level. It reflects.”
Blair Thomas, EIG Chairman and CEO“The energy transition will impact every investment decision we make. We are committed to helping enable an orderly transition that balances society’s twin goals of decarbonization and energy security. At the same time, we believe the LNG industry is ripe for change and there is a role for nimble pure-play companies like MidOcean Energy. While our initial focus is on deals announced in Australia, we believe the opportunity is global. We are excited to expand our existing partnership with Aramco to include this important initiative. ”
De La Rey Venter, CEO, MidOcean Energysays: “Midocean Energy is proud to have Aramco as a major shareholder and strategic partner. We share the belief that LNG is an essential enabler of the global energy transition. We believe the global LNG industry has strong fundamentals for decades to come, and synergistic partnerships are at the core of how MidOcean Energy does business, grows and thrives. We have a partner with long-term thinking in their DNA and an unwavering commitment to lasting collaboration. We look forward to pursuing many new opportunities together.”
