Aramco Strikes $11 Billion Infrastructure Deal with BlackRock-Led Group

BlackRock Inc., through its Global Infrastructure Partners unit, has led an $11 billion lease deal with Saudi Aramco involving key natural gas infrastructure tied to the kingdom’s massive Jafurah project. Bloomberg reports that, under the agreement, the BlackRock-led group will lease midstream facilities that serve Jafurah and then lease them back to Aramco for 20 years.

The Jafurah gas development — with an estimated cost exceeding $100 billion — is central to Saudi Arabia’s plans to supply domestic power generation and expand gas exports. The unconventional field requires advanced extraction techniques to tap gas locked in hard rock formations.

As part of the deal, a new subsidiary, Jafurah Midstream Gas Company, will be created. Aramco will hold a 51% controlling stake, while the investor group will own the remaining 49%. The arrangement will not limit Aramco’s production capacity.

This transaction aligns with Aramco’s broader strategy to raise capital by monetizing non-core infrastructure assets. The state-controlled giant is a key funding source for Saudi Arabia’s Vision 2030 economic transformation plan, which aims to diversify the economy into areas such as artificial intelligence, tourism, sports, and futuristic city projects — all in preparation for a future of declining oil demand.

For BlackRock, the move deepens its footprint in Saudi Arabia and the wider Gulf. The firm was the first major global asset manager to open a Riyadh office and has invested in Kuwait, Qatar, and the UAE. Aramco CEO Amin Nasser has served on BlackRock’s board since 2023. BlackRock was also part of the 2021 investment consortium that acquired stakes in Aramco’s national gas pipeline network.

Aramco CFO Ziad Al-Murshed said in an August 5 earnings call that the company continues to assess its portfolio to “unlock capital” from lower-return assets and reinvest in core operations. Infrastructure, he noted, often attracts outside investors willing to provide capital in exchange for stable returns.

Bloomberg previously reported that Aramco had explored bringing in outside investors for parts of the Jafurah project, including its midstream assets, as early as 2021.

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