Saudi Aramco is increasing its stake in liquefied natural gas company MidOcean Energy to 49%, and funding the acquisition of an additional stake in Peru LNG.
MidOcean Energy, based in Washington DC, has entered into a definitive agreement to acquire an additional 15% interest in Peru LNG (PLNG) from Hunt Oil Company.
Following the closing of the transaction, MidOcean’s interest in PLNG will increase from 20% to 35%. Morgan Stanley acted as exclusive financial adviser to MidOcean on the transaction, and Latham & Watkins acted as legal adviser. Bracewell LLP served as legal advisor to Hunt.
MidOcean is an LNG company formed and managed by EIG, a leading institutional investor in the global energy and infrastructure sectors.
Aramco played a pivotal role in the transaction, including undertaking key technical and commercial due diligence as well as engaging with key stakeholders for approval of the deal. The transaction will be funded entirely by Aramco.
Its further investment in MidOcean strengthens MidOcean and Aramco’s position in the global LNG market and will provide both parties with further exposure to the only LNG export project in South America.
The Saudi company’s indirect stake in PLNG will equate to 17.2%. In addition to EIG and Aramco, Mitsubishi Corporation is invested in MidOcean, among other blue-chip investors.
Hunt’s interest in PLNG will decrease from 50% to 35%, but will remain the operator of PLNG following the transaction.