Bapco Energies sells minority stake in Saudi Bahrain Pipeline Co. to BlackRock

JEDDAH: Bapco Energies has sold a minority stake in Saudi Bahrain Pipeline Co. to a BlackRock Diversified Infrastructure fund, marking the company’s first asset monetization.

According to the press release, the transaction involves BlackRock acquiring a minority interest in SBPC, which operates a 112 km pipeline transporting crude oil from Saudi Aramco to Bapco Refining. Despite this sale, Bapco Energies will maintain majority ownership and control of SBPC.

This strategic move is part of Bapco Energies’ broader efforts to support Bahrain’s goal of achieving net-zero carbon emissions by 2060. It highlights the company's commitment to investing in decarbonization initiatives across energy and utility sectors owned by the government.

Additionally, the deal underscores Bahrain’s growing role as a leader in innovative energy solutions by attracting significant global investors like BlackRock.

Mark Thomas, the group CEO of Bapco Energies, said: “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.”

He added: “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.” 

The release also revealed that the proceeds from the sale will be reinvested into Bapco Energies' capital.

In conjunction with the sale of SBPC shares, Bapco Energies and BlackRock have signed a memorandum of understanding to explore potential future collaborations on infrastructure and decarbonization projects in Bahrain.

The MoU outlines joint efforts to advance initiatives such as renewable energy development, electric vehicle charging networks, carbon capture, and biofuel operations.

The signing ceremony, held in Bahrain, was attended by Sheikh Nasser bin Hamad Al-Khalifa, chairman of Bapco Energies, and Mohamed bin Mubarak bin Daina, Bahrain’s minister of oil and environment. Senior representatives from both BlackRock and Bapco Energies were also present.

This agreement underscores the commitment of both organizations to reducing Bahrain’s carbon footprint and advancing sustainable energy solutions in the region.

“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 goal,” said Edward Winter, managing director, head of EMEA for Diversified Infrastructure at BlackRock. 

The partnership is seen as a key move to enhance foreign direct investment and support Bahrain’s sustainable development goals.