BlackRock is reportedly in early talks to sell its minority stake in a Saudi Arabian gas pipeline venture, potentially back to Saudi Aramco, according to Bloomberg. The discussions are still preliminary, with no certainty of a finalized deal. If talks fail, BlackRock may explore other exit options.
The U.S. investment firm led a $15.5 billion consortium deal in 2021 to acquire a 49% stake in a company leasing rights to Aramco’s gas pipeline infrastructure. At the time, it was one of the largest infrastructure investments in the Gulf, symbolizing strong institutional confidence in Saudi energy assets.
A repurchase by Aramco would reflect a shift in strategic priorities. As the company faces mounting debt and oil market headwinds, regaining control over critical energy infrastructure may be part of its long-term resilience plan. The potential move echoes similar developments in the UAE, where Lunate, a state-backed fund, recently acquired major pipeline holdings from BlackRock and KKR.
Why it matters
A deal could signal a regional pivot toward nationalizing core energy assets amid global uncertainty. For BlackRock, the move may reflect a shift in strategy or a desire to reallocate capital, while for Aramco, it's about reinforcing control as it faces debt pressures and evolving oil dynamics.
