Bapco Energies sells stake in Saudi Bahrain Pipeline to BlackRock fund

Bapco Energies, Bahrain’s leading integrated energy company, has sold a minority stake in the Saudi Bahrain Pipeline Company (SBPC) to a fund managed by BlackRock’s Diversified Infrastructure team, marking the company’s first asset monetisation.

The deal underscores BlackRock’s commitment to investing in Bahrain and its broader infrastructure ambitions in the region.

SBPC owns part of the 112-km pipeline that supplies crude oil from Saudi Aramco to Bapco Refining, a subsidiary of Bapco Energies.

While Bapco Energies retains majority ownership and governance over SBPC, the proceeds from the sale will be used to support its capital projects aimed at advancing Bahrain’s energy transition.

Bapco Energies and BlackRock to collaborate in the future

The transaction also paves the way for future collaboration between Bapco Energies and BlackRock.

The two companies signed a memorandum of understanding to explore joint investments in Bahraini infrastructure and decarbonisation projects, including renewable energy, electric vehicle charging, carbon capture, energy efficiency, and waste-to-energy initiatives.

These efforts aim to reduce Bahrain’s carbon footprint as the kingdom targets net-zero emissions by 2060.

Shaikh Nasser bin Hamad Al Khalifa, chairman of Bapco Energies, hailed the partnership as a significant milestone aligned with Bahrain’s national vision. “This partnership highlights Bahrain’s innovative approach to attracting foreign direct investment,” he said.

Mark Thomas, group CEO of Bapco Energies, emphasised that the company’s initiatives are focused on enhancing Bahrain’s economic resilience while promoting sustainability. “This transaction allows us to maximise value across our investment portfolio, contributing to the national economy and supporting comprehensive development,” he said.

Edward Winter, managing director and head of EMEA for BlackRock’s Diversified Infrastructure, highlighted the importance of the deal. “This investment not only offers exposure to a critical infrastructure asset but also supports Bahrain’s modernisation and decarbonization goals,” he said.

Recent acquisition

In other news, Bapco Energies recently announced the acquisition of the minority stakes held by Chevron (12.5 per cent) and Boubyan Petrochemicals (12.5 per cent) in Bapco Gas, formerly known as Banagas.

The acquisition of these minority stakes will enable Bapco Energies to fully integrate Bapco Gas into its operations, optimising its portfolio and enhancing synergies across its various subsidiaries.

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