EIG revealed these moves in a statement on Monday.
In September 2023, Aramco agreed to buy a minority stake in MidOcean Energy for $500 million, but it did not reveal the size of the stake.
Aramco will now increase its interest in MidOcean to 49 percent, EIG said on Monday.
In addition to EIG and Aramco, Japan’s Mitsubishi Corporation is invested in MidOcean, among other blue-chip investors.
Peru LNG
Earlier this year, MidOcean completed its previously announced purchase of a 20 percent stake in Peru LNG from a unit of South Korean conglomerate SK.
Following the deal’s completion, MidOcean now holds a 20 percent stake in Peru LNG, the same as LNG giant Shell, which also offtakes all of the volumes from the 4.45 mtpa LNG plant at Pampa Melchorita.
US-based Hunt Oil holds a 50 percent operating stake in the LNG plant, while Japan’s Marubeni has a 10 percent stake in Peru LNG.
However, MidOcean entered into a definitive agreement to buy an additional 15 percent interest in Peru LNG from Hunt.
Following the closing of the transaction, MidOcean’s interest in Peru LNG will increase to 35 percent.
Hunt’s interest in Peru LNG will decrease to 35 percent, and Hunt will remain the operator of Peru LNG following the transaction.
Hunt continues to own a 25.2 percent interest in the Camisea upstream project in Peru.
EIG said Aramco played a “pivotal role” in the transaction, including undertaking key technical and commercial due diligence as well as engaging with key stakeholders for transaction approval.
The transaction will be funded entirely by Aramco.
EIG did not provide the price tag of this deal.
Aramco’s further investment in MidOcean strengthens MidOcean and Aramco’s position in the global LNG market and will provide both parties with further exposure to the only LNG export project in South America, EIG said.
MidOcean’s LNG expansion
MidOcean is heavily investing in LNG.
In addition to these deals, the company completed earlier this year its acquisition of Tokyo Gas Co.’s interests in a portfolio of Australian integrated LNG projects.
“We are pleased to increase our stake in PLNG, a strategic asset that aligns with MidOcean’s vision of creating a global, diversified, and resilient LNG portfolio,” De la Rey Venter, MidOcean’s CEO, said
“Our belief in the long-term fundamentals of the LNG market and in the strength of PLNG’s unique position as the only LNG export facility in South America remains steadfast. We look forward to strengthening our partnership with Hunt Oil and the other PLNG co-venturers and continuing to support the project’s positive impact on the Peruvian energy market,” he said.
