Saudi Aramco, the national oil enterprise of Saudi Arabia, has arrived at a deal to elevate $12.4 billion from the sale of a 49 % stake in a pipeline-rights company.

The revenue will appear from a consortium led by EIG Worldwide Electrical power Companions, a Washington-based mostly trader in pipelines and other strength infrastructure.

Below the arrangement declared on Friday, the investor team will buy 49 % of a new corporation referred to as Aramco Oil Pipelines, which will have the rights to 25 yrs of payments from Aramco for transporting oil as a result of Saudi Arabia’s pipeline networks.

Aramco is underneath force from its major owner, the Saudi govt, to produce money to finance state functions as effectively as investments like new cities to diversify the economic climate absent from oil.

The business has pledged to fork out $75 billion in yearly dividends, virtually all to the authorities, as effectively as other taxes.

Final year, the dividends arrived to well in excess of the company’s web income of $49 billion. Just lately, Aramco was tapped by Crown Prince Mohammed bin Salman, the kingdom’s most important policymaker, to direct a new domestic financial commitment travel to establish up the Saudi economic climate.

The pipeline sale “reinforces Aramco’s purpose as a catalyst for attracting significant international investment decision into the Kingdom,” Aramco stated in a assertion.

From Saudi Arabia’s point of view, the offer has the virtue of elevating money up entrance without giving up regulate. Aramco will own a 51 % vast majority share in the pipeline business and “retain total possession and operational control” of the pipes the corporation claimed.

Aramco claimed Saudi Arabia would keep regulate more than how significantly oil the business produces.

Abu Dhabi, Saudi Arabia’s oil-rich neighbor, has struck similar oil and gas specials with outside the house buyers.