Bapco Energies, the integrated energy company powering energy transition in the Kingdom of Bahrain, and BlackRock, the global asset manager, announced that Bapco Energies has sold a minority ownership stake in the Saudi Bahrain Pipeline Company (SBPC) to a fund managed by BlackRock’s Diversified Infrastructure team.
According to Industry sources, this transaction displays Bapco Energies’ first asset monetization and also represents BlackRock’s commitment to investing in the Kingdom of Bahrain. 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.
Industry sources further added that the Memorandum of Understanding displays 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.
The signing ceremony, held in the Kingdom Bahrain, was attended by His Highness Shaikh Nasser bin Hamad Al Khalifa, Representative of His Majesty the King for Humanitarian Works and Youth Affairs, and Chairman of Bapco Energies, and His Excellency Dr. Mohamed bin Mubarak Bin Daina, Minister of Oil and Environment, Special Envoy for Climate Affairs, alongside senior representatives from Bapco Energies and BlackRock , Mark Thomas, Bapco Energies Group Chief Executive Officer, Edward Winter, Head of EMEA for Diversified Infrastructure at BlackRock and Yazeed Almubarak, Managing Director, BlackRock Middle East.
Commenting on the partnership, His Highness Shaikh Nasser bin Hamad Al Khalifa stated: “The investment and strategic partnership with BlackRock marks a significant milestone for Bapco Energies and the Kingdom of Bahrain, as it aligns with the vision of His Majesty King Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain and the aspirations of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister. It highlights the appeal of the Kingdom of Bahrain’s innovative approach to attract foreign direct investments.”
Mark Thomas – Group Chief Executive Officer, Bapco Energies, stated: “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. “
Edward Winter, Managing Director, Head of EMEA for Diversified Infrastructure, BlackRock, stated: “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 modernization of a strategic asset for Bahrain as it seeks to achieve its decarbonization 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.”
Yazeed Almubarak, Managing Director, BlackRock Middle East, stated: “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.
Industry sources further confirmed that the proceeds from this transaction will be used for Bapco Energies capital. Bapco Energies is aiding 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.
