BlackRock Acquires Minority Stake in BAPCO Energies

Global asset manager BlackRock has announced that it has acquired a minority stake in the Saudi Bahrain Pipeline Company (SBPC) from Bapco Energies, an integrated energy company leading Bahrain’s energy transition plans.

The stake was bought by BlackRock Infrastructure Fund, which is managed by BlackRock’s Diversified Infrastructure team, and the transaction represented Bapco Energies’ first asset monetisation and reflects BlackRock’s commitment to investing in Bahrain.

In conjunction with this transaction, Bapco Energies and BlackRock’s Diversified Infrastructure business have signed a Memorandum of Understanding (MOU) to explore collaboration on future Bahraini infrastructure and decarbonisation projects.

The MOU outlines 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.

SBPC owns a part 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.

The proceeds from this transaction will be used for BAPCO Energies capital. Bapco Energies is supporting Bahrain’s plans to achieve net-zero carbon emissions by 2060, with a commitment to investing in decarbonisation projects across government-owned energy and utility businesses.

The signing ceremony was held in Bahrain and was attended by H H Shaikh Nasser bin Hamad Al Khalifa, Representative of His Majesty the King for Humanitarian Works and Youth Affairs, and Chairman of Bapco Energies, and Dr Mohamed bin Mubarak Bin Daina, Minister of Oil and Environment, Special Envoy for Climate Affairs, alongside senior representatives from Bapco Energies and BlackRock, Bapco Energies Group CEO Mark Thomas, Head of EMEA for Diversified Infrastructure at BlackRock Edward Winter, and Managing Director of BlackRock Middle East Yazeed Almubarak.

Aligns with Bahrain’s Vision

Speaking on the occasion, Shaikh Nasser said that the investment and strategic partnership with BlackRock marks a significant milestone for Bapco Energies and Bahrain, as it aligned with the vision of Bahrain’s King His Majesty King Hamad bin Isa Al Khalifa, and the aspirations of H R H Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister.

Mark Thomas said that as Bapco Energies has been striving to maximise value across its investment portfolio, the company was implementing a range of projects and initiatives that support comprehensive national development and capitalising on its 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,” he added.

Edward Winter said that the investment in SBPC 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, he said.

Yazeed Almubarak said that his company was focused on identifying and investing in infrastructure assets that offer attractive risk-adjusted returns across the Middle East region.

“This investment in SBPC 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,” he added.