Energy giant Saudi Aramco said it has struck a $12.4-billion deal to sell a minority stake in a newly formed oil pipeline business to a consortium led by U.S.-based EIG Global Energy Partners.

The deal underscores how Aramco – the kingdom's cash cow – seeks to monetize its once-untouchable assets to generate revenue for the Saudi government as it accelerates efforts to diversify the oil-reliant economy.

"Upon closing, Aramco will receive upfront proceeds of around $12.4 billion, further strengthening its balance sheet through one of the largest energy infrastructure deals globally," the company said in a statement late Friday.

"As part of the transaction, a newly-formed Aramco subsidiary, Aramco Oil Pipelines Company, will lease usage rights in Aramco's stabilized crude oil pipelines network for a 25-year period."

The EIG-led consortium will hold a 49 percent stake in the subsidiary, Aramco said, adding that it will retain "full ownership and operational control".

In a separate statement, EIG, a Washington-based energy investment firm, said the new venture is valued at approximately $25.3 billion.

The deal covers all of Aramco's "existing and future stabilized crude pipelines" in the kingdom, an elaborate network that connects oil fields to downstream facilities, EIG said.

"We are proud to partner with Aramco in this marquee global infrastructure asset," said EIG chairman R. Blair Thomas.

Neither company said which other firms were part of the consortium.

Last month, Aramco posted a 44.4 percent slump in 2020 net profit due to lower crude prices, piling pressure on government finances as Riyadh pursues multi-billion dollar projects to diversify the economy.

Long seen as the kingdom's "crown jewel", Aramco and its assets were once tightly under government control and considered off-limits to outside investment.

But with the rise of Crown Prince Mohammed bin Salman, who is pushing to implement his "Vision 2030" reform program, the kingdom has shown readiness to cede some control.

Aramco sold a sliver of its shares on the Saudi bourse in December 2019, generating $29.4 billion in the world's biggest initial public offering.