Bapco Energies, Bahrain’s state-owned energy firm, has sold a minority stake in the Saudi Bahrain Pipeline Company (SBPC) to a fund managed by BlackRock’s diversified infrastructure team.
The transaction marks Bapco Energies’ first asset sale and underscores BlackRock’s commitment to investing in Bahrain.
In addition to the stake sale, Bapco Energies and BlackRock have signed a memorandum of understanding to explore future collaboration on infrastructure and decarbonisation projects in Bahrain. The partnership could focus on renewable energy, electric vehicles, carbon capture, energy efficiency, and waste-to-energy initiatives.
The signing ceremony, held in Bahrain, was attended by His Majesty King Hamad’s representative for humanitarian work and youth affairs and Bapco Energies chairman Shaikh Nasser bin Hamad Al Khalifa and Oil and Environment Minister and Special Envoy for Climate Affairs Dr Mohammed Bin Daina, alongside senior representatives from Bapco Energies and BlackRock, Bapco Energies Group chief executive Mark Thomas, BlackRock head of EMEA for diversified infrastructure Edward Winter and BlackRock Middle East managing director Yazeed Almubarak.
Commenting on the partnership, Shaikh Nasser said: “The investment and strategic partnership with BlackRock marks a significant milestone for Bapco Energies and Bahrain, as it aligns with the vision of His Majesty King Hamad bin Isa Al Khalifa and the aspirations of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister.
It highlights the appeal of the kingdom’s innovative approach to attract foreign direct investments.”
Mr Thomas said: “As we strive in Bapco Energies to maximise value across our investment portfolio, we are implementing a range of projects and initiatives that support comprehensive national development and capitalising 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.”
Mr Winter said: “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 modernisation of a strategic asset for Bahrain as it seeks to achieve its decarbonisation goals.
It is also a testament to our position as a leading infrastructure investor in the Middle East, with the capability to source unique opportunities for our clients.”
Mr Almubarak said: “At BlackRock, we are focused on identifying and investing in infrastructure assets that offer attractive risk-adjusted returns across the Middle East region.
This investment in Saudi Bahrain Pipeline Company and the potential for future collaboration with Bapco Energies reflects our commitment to working with key partners in the region to bring our infrastructure investment expertise to meet economic development and diversification goals.”
SBPC owns a portion of the 112-km pipeline supplying crude oil from Saudi Aramco to Bapco Refining, the national refinery of Bahrain and a subsidiary of Bapco Energies. Under the terms of the transaction, the BlackRock infrastructure fund has taken a minority stake in SBPC, while Bapco Energies retained majority ownership and governance over the company.
The proceeds from this transaction will be used for Bapco Energies capital. Bapco Energies is supporting the kingdom to achieve net-zero carbon emissions by 2060, with a commitment to investing in decarbonisation projects across government-owned energy and utility businesses.
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