Clifford Chance, a renowned global law firm, has successfully advised lenders on a significant $11 billion lease-and-leaseback financing arrangement with Saudi Aramco. This strategic move supports a consortium led by Global Infrastructure Partners in the highly anticipated Jafurah gas project, which is pivotal to Saudi Arabia's comprehensive energy strategy.

The newly established Jafurah Midstream Gas Company (JMGC) is set to lease rights to two major facilities: the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility. Subsequently, these assets will be leased back to Aramco, which will then pay a tariff for processing and treatment services spanning a 20-year period.

This innovative financial structure is designed to free up capital for Aramco while ensuring it retains operational control. This arrangement not only secures stable, long-term returns for investors but also solidifies investor confidence globally, as evidenced by the 49% stake owned by the GIP-led consortium, now part of BlackRock.

The cross-border team responsible for advising the lenders hailed from various Clifford Chance offices, including Abu Dhabi, Dubai, London, Luxembourg, and Riyadh (AS&H Clifford Chance). The team was led by partner Chirag Sanghrajka, who emphasized that the deal was a milestone that required innovative structuring and extensive collaboration.

Saudi Aramco, headquartered in Dhahran and recognized as the world’s largest integrated energy and chemicals company, continues to play a central role in the global energy market and is a key component of Saudi Arabia’s Vision 2030. The company stands as the top crude oil producer worldwide and engages comprehensively across the hydrocarbon chain.

Clifford Chance boasts a storied history of over a century and maintains a presence in 23 countries through 34 offices. As a member of the prestigious Magic Circle, the firm is celebrated for its deep expertise in banking, corporate law, finance, dispute resolution, and tax. It serves a diverse clientele ranging from multinational corporations to governments, integrating international best practices with local market insights to provide top-tier legal solutions.

For more details on Clifford Chance's role and additional insights into the Jafurah Gas Project, visit their official website.