Black Rock acquires a minority stake in SBPC: the advisors
Global asset manager BlackRock acquired a minority ownership stake in the Saudi Bahrain Pipeline Company (SBPC) from Bapco Energies. Gibson Dunn and Slaughter and May (both from their London offices) advised BlackRock. This transaction represents Bapco Energies’ first asset monetization and reflects BlackRock’s commitment to investing in the Kingdom of Bahrain.
About the transaction
Under the terms of the transaction, the BlackRock Diversified Infrastructure team has taken a minority stake in SBPC, while Bapco Energies retained majority ownership and governance over the company. Bapco Energies will use the proceeds from this transaction for its capital
Memorandum of understanding
In conjunction with this transaction, Bapco Energies and BlackRock’s Diversified Infrastructure business have signed a Memorandum of Understanding to explore collaboration on future Bahraini infrastructure and decarbonization projects. The Memorandum of Understanding outlines opportunities to provide technical expertise, financial support, and strategic guidance for renewable energy projects, electric vehicle charging, carbon capture and sequestration, direct air capture, energy efficiency, waste-to-energy, and biofuel operations, all aimed at reducing the carbon footprint of Bahraini infrastructure.
Mark Thomas, Group Chief Executive Officer, Bapco Energies, commented:
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. 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. “
Gibson Dunn team
The Gibson Dunn team advising BlackRock on financing aspects of the deal was led by London partner Kavita Davis, who was supported by associates Patrick Garrett and Charles Case (finance; projects and infrastructure).
Slaughter and May team
Slaughter and May team comprised corporate partner Robin Ogle and corporate associates Angus Tyrrell and Mary Kiernan, infrastructure and energy partner Oliver Moir, tax partner Gareth Miles and tax associate Lauren Biggs.
Bapco Energies
SBPC owns a portion of the 112-kilometer pipeline supplying crude oil from Saudi Aramco to Bapco Refining, the national refinery of Bahrain and a subsidiary of Bapco Energies. Bapco Energies is supporting the Kingdom of Bahrain to achieve net-zero carbon emissions by 2060, with a commitment to investing in decarbonization projects across government-owned energy and utility businesses.