Bahraini energy firm Bapco Energies has sold a minority stake in the Saudi Bahrain Pipeline Company (SBPC) to an infrastructure fund managed by BlackRock and has also agreed to explore future collaboration on Bahraini infrastructure and decarbonisation projects with the manager.
The fund managed by BlackRock’s diversified infrastructure business is acquiring the unspecified minority stake in SBPC which owns a portion of the 112km pipeline supplying crude oil from Saudi Aramco to Bapco Refining, the national refinery of Bahrain and a subsidiary of Bapco Energies.
The transaction amount, which was undisclosed, marks Bapco Energies’ first asset sale.
Bapco Energies and BlackRock have also signed a memorandum of understanding to explore collaboration on renewable energy projects, electric vehicle charging, carbon capture, energy efficiency, waste-to-energy and biofuel operations in Bahrain.
Shaikh Nasser bin Hamad Al Khalifa said: “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 CEO at Bapco Energies, 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 capitalising 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, MD and head of EMEA for diversified infrastructure, BlackRock, 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.”
Yazeed Almubarak, MD of BlackRock Middle East, said: “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.”
To read the latest IPE Real Assets magazine click here.
