Blackrock’s Global Infrastructure Partners (GIP) is leading a consortium that has signed an $11 billion investment deal with oil and gas giant Aramco.
Slaughter and May is advising GIP, while White & Case is understood to be advising Aramco.
Slaughter and May has landed a major energy mandate, advising asset management giant BlackRock’s Global Infrastructure Partners (GIP) on its $11 billion investment in Jafurah Midstream Gas Company (JMGC), a new Aramco subsidiary tied to one of Saudi Arabia’s largest gas reserves.
Under the leaseback arrangement, JMGC will own and operate key gas-processing facilities in the Jafurah basin, collecting regular payments from Aramco. The state-owned oil and gas giant will retain a 51% majority stake in the subsidiary, while the GIP-led consortium will own the remainder.
The deal comes less than a year after BlackRock shook up the infrastructure market with its $12.5 billion acquisition of GIP, one of the world’s largest infrastructure investors.
Bigger picture
The deal is being seen as another vote of confidence in Saudi Arabia’s push to draw in foreign capital and deliver on Vision 2030 - its decade-old plan to diversify the economy away from oil. Alongside energy projects, recent inflows have also targeted AI infrastructure as the country seeks to become a tech and AI hub.
Law firms are looking to capitalise on the boom through energy and infrastructure mandates. A wave of international firms are expanding their presence in the Kingdom. Most recently, Freshfields launched a standalone Riyadh office in August.
Advising
Slaughters is advising GIP with a team led by corporate partner Robin Ogle, supported by Oliver Muir (energy and infrastructure), David Hay (financing) and Gareth Miles (tax).
The deal adds to a run of high-profile BlackRock mandates for Slaughters. In June, it advised GIP on a joint venture with Norwegian shipping group Solvang focused on LNG, while last September it acted on BlackRock’s acquisition of a stake in the Saudi Bahrain Pipeline Company.
White & Case is reported by The Lawyer to be advising long-time client Aramco, though the firm declined to comment when approached by Non-Billable.
Among other instructions, the firm advised Aramco on its secondary share sale last year that raised $12.3 billion, one of the biggest secondary offerings in decades.
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