BlackRock buys stake in Saudi-Bahraini oil pipeline

Bahrain’s state-run Bapco Energies has sold a minority stake in an oil pipeline linking Saudi Arabia and Bahrain to a fund managed by US investment bank BlackRock.

The BlackRock Diversified Infrastructure fund purchased a stake in the Saudi Bahrain Pipeline Co (SBPC), which owns a section of the 112-km pipeline.

It supplies crude oil from Saudi Aramco to Bapco Refining, a subsidiary of Bapco Energies.

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While financial details were not disclosed, Bapco Energies said the proceeds will strengthen its capital. The sale is part of the island nation’s monetisation plan to fund its decarbonisation efforts.

The pipeline is capable of transporting up to 350,00 barrels per day of crude oil, according to Saudi Aramco.

The company will partner with BlackRock to explore investment opportunities in Bahraini infrastructure and decarbonisation projects.

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The collaboration will focus on technical expertise, financial support and strategic guidance for sectors such as renewable energy, electric vehicle charging, carbon capture and sequestration, direct air capture, energy efficiency, waste-to-energy, and biofuel.

Bahrain wants to be carbon neutral by 2060.

In July, investors in Saudi Aramco’s gas pipeline network, led by BlackRock, were planning to issue $3 billion in bonds to refinance a loan that backed their purchase of a stake in the network.  

The consortium of investors took a $13.4 billion bridge loan in 2021 to acquire a 49 percent stake in Aramco Gas Pipelines, as part of a $15.5 billion deal.