Saudi Aramco Nears $10B BlackRock-Led Jafurah Gas Investment

Saudi Aramco is nearing a deal to raise approximately $10 billion from a consortium led by US asset manager BlackRock to invest in infrastructure related to the massive Jafurah shale gas project. This funding strategy mirrors previous 'lease and lease-back' agreements Aramco executed in 2021, where Aramco retained control of assets while investors earned tariffs for pipeline usage. The $100 billion Jafurah project, one of the world's largest shale gas developments, is key to Aramco's plan to increase gas production capacity by 60% by 2030 and diversify its revenue sources amid declining oil prices and revenues. The deal is part of a broader trend among Gulf oil producers to secure capital through financial arrangements that provide stable revenue streams while supporting economic diversification efforts. Despite lower oil prices and dividend cuts, Aramco has emphasized it will continue investing in its expansion, including assets like gas pipelines and gas-fired power plants. BlackRock's involvement underscores significant US investment interest following heightened ties between the US and Saudi Arabia.