Aramco, a global leader in the integrated energy and chemicals sector, has taken a significant step in diversifying its portfolio by signing definitive agreements to acquire a strategic minority stake in MidOcean Energy for a substantial $500 million. MidOcean Energy, a liquefied natural gas (LNG) company, is currently on a trajectory for growth, backed by EIG, a prominent institutional investor specializing in global energy and infrastructure.
MidOcean Energy has set its sights on acquiring interests in four prominent Australian LNG projects, all part of its ambitious strategy to establish a diversified global LNG enterprise. For Aramco, this marks its maiden international foray into the LNG sector, demonstrating the company's commitment to exploring new avenues in the energy industry.
This partnership between Aramco and MidOcean Energy builds upon an existing relationship between Aramco and EIG. Notably, they were part of a consortium that acquired a substantial 49% stake in Aramco Oil Pipelines Company, a subsidiary of Aramco, in 2021.
The successful completion of this transaction is contingent on various closing conditions, including regulatory approvals. Additionally, Aramco retains the option to expand its shareholding and associated rights in MidOcean Energy in the future.
Aramco's President & CEO, Amin H. Nasser, expressed his satisfaction with this development, stating, "We are pleased to be strengthening our strategic partnership with EIG through this acquisition, which marks Aramco’s first international investment in LNG. We anticipate strong demand-led growth for LNG as the world continues on its energy transition journey, with gas being a vital fuel and feedstock in various industries. We believe that gas will be important in meeting the world’s rising need for secure, accessible and more sustainable energy."
Nasir K. Al-Naimi, Aramco's Upstream President, emphasized the significance of this move in Aramco's strategic vision, saying, "This is an important step in Aramco’s strategy to become a leading global LNG player. We see significant opportunities in this market, which is positioned for structural, long-term growth. MidOcean Energy is well-equipped to capitalize on rising LNG demand, and this strategic partnership reflects our willingness to work with leading international players to identify and unlock new opportunities at a global level."
Blair Thomas, Chairman and CEO of EIG, highlighted their commitment to energy transition, stating, "Energy transition informs every investment decision we make, and we believe LNG has a key role to play in enabling an orderly transition that balances society’s twin goals of decarbonization and energy security." He also underlined the potential for change in the LNG industry and the unique position of MidOcean Energy as a nimble, pure-play company ready to capitalize on global opportunities.
De la Rey Venter, CEO of MidOcean Energy, expressed his pride in having Aramco as a strategic partner and key shareholder, stating, "It is an honor for MidOcean Energy to have Aramco as a key shareholder and strategic partner. We share the conviction that LNG is an integral enabler of the global energy transition, and we believe that the global LNG industry has strong fundamentals for many decades to come." Venter also emphasized the importance of synergistic partnerships and their core role in MidOcean Energy's growth and success. In Aramco, he sees a partner with a long-term perspective and an unwavering commitment to enduring collaborations, paving the way for numerous new opportunities in the future.
