Aramco raises stake in MidOcean

Saudi Aramco’s stake in MidOcean Energy, the liquefied natural gas unit of the US-based energy investor EIG, will rise to 49 percent after the oil giant agreed to fund an acquisition by MidOcean in Peru.

MidOcean signed a deal to buy an additional 15 percent interest in Peru LNG from the American energy company Hunt Oil. 

The purchase will increase MidOcean’s stake in Peru LNG to 35 percent.

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Aramco played a “pivotal role in the transaction, including undertaking technical and commercial due diligence and engaging with stakeholders for transaction approval”, MidOcean said. 

Aramco’s indirect stake in Peru LNG will reach 17.2 percent. Aramco made its first investment in the international LNG market in September 2023, taking up a minority stake in MidOcean Energy with a $500 million investment.

Hunt’s interest in Peru LNG will fall from 50 percent to 35 percent, but the company will remain the facility operator after the transaction.

The outlook for LNG remains bullish, the London-headquartered consultancy firm Wood Mackenzie has said, with another 100 million tonnes a year of capacity required to meet demand growth by the mid-2030s.