A group of international investors led by BlackRock’s Global Infrastructure Partners is negotiating with lenders to raise as much as 10.3 billion dollars to finance Aramco’s Jafurah infrastructure deal. According to sources with knowledge of the matter, discussions are currently underway with major banks including JPMorgan and Japan’s Sumitomo Mitsui Banking Corporation to participate in the transaction.
The debt package is expected to be structured in two parts, consisting of both short-term and long-term loans. While none of the parties have officially commented, industry insiders say the talks reflect strong global interest in Saudi Arabia’s efforts to expand and modernize its energy infrastructure.
Structure of the Deal
Under the agreement, a newly formed entity known as Jafurah Midstream Gas Company will take over the leasing rights for gas processing facilities tied to the Jafurah gas development. These facilities will then be leased back to Aramco under a 20-year arrangement, ensuring operational continuity while giving investors stable returns on infrastructure assets.
Aramco will retain a controlling 51 percent stake in the joint venture, with the remaining 49 percent owned by the investor consortium led by BlackRock. This ownership structure allows the Saudi energy giant to maintain operational leadership while unlocking capital from international partners to fund long-term expansion.
Strategic Significance
The Jafurah gas development is seen as one of the most important energy projects in Saudi Arabia, designed to strengthen the kingdom’s natural gas capabilities and reduce dependence on oil revenues. For BlackRock and its partners, the deal represents an opportunity to secure exposure to one of the world’s largest energy markets while benefiting from the stability of Aramco’s operational expertise.
The financing talks also highlight a broader trend of global investors moving into Middle Eastern energy and infrastructure assets, lured by steady returns and government-backed projects. With energy demand continuing to rise, such deals offer both scale and resilience at a time when many global markets are facing volatility.
What Lies Ahead
If finalized, the financing package will mark one of the largest infrastructure-related debt raises in the region. It also underscores how Saudi Arabia is leveraging international capital to fund its ambitious energy transformation plans under Vision 2030. For Aramco, the transaction strengthens its balance sheet while ensuring sustained investment into its long-term natural gas strategy.
As the negotiations progress, the deal will be closely watched by investors worldwide, given its size, strategic importance, and potential to set a precedent for future partnerships in the region’s energy sector.
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