Clifford Chance advises lenders to a Global Infrastructure Partners-led consortium on Aramco’s US$11 billion Jafurah midstream deal

Clifford Chance are advising the lenders to a global consortium led by Global Infrastructure Partners (GIP), a part of BlackRock, in connection with an $11 billion lease and leaseback deal involving Aramco’s Jafurah gas processing facilities.

The Jafurah field is the largest non-associated gas development in Saudi Arabia, with estimated reserves of 229 trillion standard cubic feet of raw gas and 75 billion Stock Tank Barrels of condensate. As part of the transaction, a newly-formed subsidiary of Aramco, Jafurah Midstream Gas Company (JMGC), will lease development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility and lease them back to Aramco for a period of 20 years. JMGC will receive a tariff payable by Aramco in exchange for granting Aramco the exclusive right to receive, process, and treat raw gas from Jafurah.

Aramco will retain a 51% stake in JMGC, with the remaining 49% held by the global consortium of investors led by GIP-managed funds.

A team across our Abu Dhabi, Dubai, Luxembourg, Riyadh, and London offices jointly advised the lenders to the GIP-led consortium on this transaction.

The Clifford Chance core team was led by UAE-based Partner Chirag Sanghrajka, with support from Gabriel Miranda (Senior Associate, Abu Dhabi) and Serena Chang (Senior Associate, Abu Dhabi). Further support was provided by a cross-practice team with deep experience in advising on complex, high-value infrastructure financings in the Middle East. The team includes Anne Drakeford (Partner, London), Bruce Kahl (Partner, London), Rachel Robertson (Senior Associate, London), Andrew Whelan (Senior Associate, London), Yasser Al-Hussain (Partner, Riyadh), Ahmed Choudhry (Partner, Riyadh), Dan Royle (Partner, Riyadh), Steve Jacoby (Partner, Luxembourg), Ali Moiz Ansari (Counsel, Riyadh), Adnes Muhovic (Counsel, Luxembourg), Charles Anderson (Senior Associate, Abu Dhabi), Julia Li (Associate, London), Sebastian Cheng (Associate, London), Solene Kendem (Associate, London), Robert Hartman (Associate, London), Omar Wazir (Associate, Riyadh), Calista Annika (Trainee, London), Zania Putri (Trainee, London), Jenna Hensen (Trainee, Luxembourg), and Celine Haddad (Trainee, Luxembourg).

Commenting on the deal, Chirag Sanghrajka, Lead Partner, said: “This deal demonstrates the continued appetite of global investors for strategic transactions in the region and highlights the innovative structuring and collaborative approach required to deliver such a significant outcome. We are delighted to support our clients in achieving a successful signing, and we congratulate all those involved.”