BlackRock has signed an $11 billion deal with Saudi Aramco to lease and lease back natural gas processing facilities in the Jafurah basin, marking a major step in the kingdom’s bid to attract foreign capital and expand its energy infrastructure.

The agreement, announced on Thursday, will see Aramco lease natural gas plants in the Jafurah field to an investment consortium led by Global Infrastructure Partners (GIP), which BlackRock acquired last year. The facilities will then be leased back to Aramco, ensuring the state-owned oil giant maintains operational control.

As part of the arrangement, a new subsidiary – Jafurah Midstream Gas Company – has been established. Aramco will hold 51% of the division, while GIP and its co-investors will own the remaining 49%.

The deal underscores Saudi Arabia’s growing focus on drawing international investors into its energy sector. Preliminary government data shows foreign direct investment into the country rose 24% in the first quarter of 2025 compared to the previous year, totalling $6.4 billion. However, overall FDI fell by 19% in 2024, highlighting the challenges the kingdom still faces in luring capital outside oil and gas.

Aramco’s chief executive Amin Nasser hailed the BlackRock agreement as proof of global confidence in the company’s long-term vision. He confirmed that production from the Jafurah basin, estimated to hold around 229 trillion cubic feet of raw gas, is expected to begin later this year.

The basin is regarded as a cornerstone of Saudi Arabia’s energy transition strategy, as natural gas will allow the country to reduce its reliance on crude oil for domestic power generation. This shift is expected to free up more oil for export, boosting revenues while helping diversify the economy.

For BlackRock, the deal builds on a track record of major partnerships with Saudi Aramco. In 2021, the investment giant led a consortium in a $15.5 billion leaseback of Aramco’s gas pipeline network. Notably, Aramco’s CEO Nasser joined BlackRock’s board in July 2023.

The $11 billion transaction, structured over several years, will be financed through GIP’s mid-market infrastructure funds. Industry observers see it as a further sign of how global investors remain drawn to Aramco’s projects, even as the kingdom pushes to broaden its economy beyond hydrocarbons.