International law firms White & Case and Herbert Smith Freehills (HSF) have worked on Aramco’s acquisition of a 50% stake in a company that supplies blue hydrogen to refineries and petrochemical plants in Saudi Arabia and the wider Middle East.
White & Case represented Saudi state-owned oil giant and longstanding client Aramco on its acquisition of Blue Hydrogen Industrial Gases Company (BHIG), a subsidiary owned by Air Products Qudra (APQ), and advised by HSF.
Financial details for the transaction have not been disclosed, though it will also include options to purchase hydrogen and nitrogen.
Upon completion of the transaction, Aramco and APQ, a joint venture between Air Products and Qudra Energy, are expected to each own a 50% stake in BHIG.
“We have supported our longstanding client Aramco on this important transaction, which marks a significant milestone in the growth of its new energies portfolio and the development of decarbonisation opportunities and products for global markets,” said White & Case partner Michael Watson, who led the firm’s deal team.
The HSF team was led by Riyadh partners Joza AlRasheed and Alexander Currie. AlRasheed said in a statement: “Energy transition is a top priority for us, and our contribution in this deal represents a substantial achievement that perfectly aligns with our strategic ambitions. The hydrogen production industry in the Kingdom of Saudi Arabia signifies a shift towards a new era of sustainable energy which is a key component of Saudi Vision 2030.”
BHIG is currently developing an industrial scale low-carbon hydrogen production plant, together with carbon capture facilities and industrial gas pipeline network, within the Jubail Industrial City in the Kingdom of Saudi Arabia. Once constructed, the facility will be one of the largest low-carbon hydrogen production facilities in the Middle East and will assist in decarbonising existing refinery and petrochemical operations in and around Jubail.
The acquisition is in line with the Kingdom’s drive to become a major hydrogen producer. Saudi Arabia is pushing to become a global leader in both producing and using hydrogen as a clean energy source.
London partner Watson led the White & Case team alongside Abu Dhabi partner Claire Patrick. The wider team included partners Anwaar Alshammari, Craig Atkinson, Karim Mariey (all in Riyadh), Sonia Abdul-Rahman (Dubai), Adam Pierson, Habeeb Rahman (both in Abu Dhabi), Strati Sakellariou-Witt (Brussels), Seth Kerschner (New York) and Taylor Pullins (Houston), as well as local partner Nezar Al Abbas (Riyadh).
The HSF team included London partners Lewis McDonald, Steven Dalton, and Andrew Wells, as well as partner Adelaide Luke in Hong Kong.
Editor’s note: This article has been updated with details of Herbert Smith Freehills’ involvement.
