Bahrain’s Bapco Energies has entered into an agreement with BlackRock‘s Diversified Infrastructure team to sell a minority stake in the Saudi Bahrain Pipeline Company (SBPC).
This strategic move allows Bapco Energies to retain majority ownership and control while bolstering its capital for future investments.
SBPC partially owns the 112km pipeline, which is crucial for transporting crude oil from Saudi Aramco to Bahrain’s national refinery, Bapco Refining.
The deal with BlackRock’s infrastructure fund is aimed at supporting Bapco Energies’ goal of helping Bahrain achieve net-zero carbon emissions by 2060.
Bapco Energies and BlackRock have also signed a memorandum of understanding to explore further collaboration on Bahraini infrastructure and decarbonisation projects.
These projects include a wide range of initiatives, from renewable energy to carbon capture, all designed to reduce the carbon footprint of Bahrain’s infrastructure.
Bapco Energies group CEO Mark Thomas said: “As we strive in Bapco Energies to maximise value across our investment portfolio, we are implementing a range of projects and initiatives that support comprehensive national development and capitalizing on our asset and operations management.
“These efforts are designed to not only enhance our economic resilience but also to foster innovation and sustainability within the energy sector. By doing so, we are contributing significantly to the national economy.”
BlackRock managing director, head of EMEA for diversified infrastructure Edward Winter said: “We are thrilled to partner with Bapco Energies. This investment in Saudi Bahrain Pipeline Company not only gives our investors exposure to a critical, contracted infrastructure asset, it also supports the modernisation of a strategic asset for Bahrain as it seeks to achieve its decarbonisation goals.
“It is also a testament to our position as a leading infrastructure investor in the Middle East, with the capability to source unique opportunities for our clients.”
Recently, Bapco Energies acquired the minority stakes previously held by Chevron and Boubyan Petrochemicals in Bapco Gas.
In March, Bapco Energies formed a partnership with TotalEnergies to improve the operations of the Sitra refinery and facilitate the trading of petroleum products.
