Bapco Energies has sold a minority ownership stake in the Saudi Bahrain Pipeline Company (SBPC) to a fund managed by BlackRock’s Diversified Infrastructure team.
This transaction represents Bapco Energies’ first asset monetization and reflects BlackRock’s commitment to investing in the Kingdom of Bahrain.
In conjunction with this transaction, Bapco Energies and BlackRock’s Diversified Infrastructure business have signed a Memorandum of Understanding to explore collaboration on future Bahraini infrastructure and decarbonization projects.
The MoU outlines opportunities to provide technical expertise, financial support, and strategic guidance for renewable energy projects, electric vehicle charging, carbon capture and sequestration, direct air capture, energy efficiency, waste-to-energy, and biofuel operations, all aimed at reducing the carbon footprint of Bahraini infrastructure.
HH Shaikh Nasser bin Hamad Al Khalifa Chairman – Bapco Energy
“The investment and strategic partnership with BlackRock marks a significant milestone for Bapco Energies and the Kingdom of Bahrain, as it aligns with the vision of His Majesty King Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain and the aspirations of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister. It highlights the appeal of the Kingdom of Bahrain’s innovative approach to attract foreign direct investments.”
Mark Thomas, Group Chief Executive Officer, Bapco Energies, said that, “As we strive in Bapco Energies to maximize 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. “
Edward Winter, Managing Director, Head of EMEA for Diversified Infrastructure, BlackRock,stated that, “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 modernization of a strategic asset for Bahrain as it seeks to achieve its decarbonization 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.”
Yazeed Almubarak, Managing Director, BlackRock Middle East, commented that, “At BlackRock, we are focused on identifying and investing in infrastructure assets that offer attractive risk-adjusted returns across the Middle East region. This investment in Saudi Bahrain Pipeline Company and the potential for future collaboration with Bapco Energies, reflects our commitment to working with key partners in the region to bring our infrastructure investment expertise to meet economic development and diversification goals.”
SBPC owns a portion of the 112-km pipeline supplying crude oil from Saudi Aramco to Bapco Refining, the national refinery of Bahrain and a subsidiary of Bapco Energies. Under the terms of the transaction, the BlackRock infrastructure fund has taken a minority stake in SBPC, while Bapco Energies retained majority ownership and governance over the company.
The proceeds from this transaction will be used for Bapco Energies capital. Bapco Energies is supporting the Kingdom of Bahrain toachieve net-zero carbon emissions by 2060, with a commitment to investing in decarbonization projects across government-owned energy and utility businesses.
