The deal marks the closing of the total investment transaction, following the formal closing of the initial investment agreement with BlackRock and KKR on 27 June 2019 and the subsequent closing of the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) investment on 1 August.
Thursday 05, September 2019 BY KUDAKWASHE MUZORIWA
The Abu Dhabi National Oil Company (ADNOC) has completed a deal for Singapore’s GIC to acquire a six per cent stake in ADNOC Oil Pipelines for $600 million.
The closing of the deal takes the combined investment in ADNOC oil pipeline infrastructure by BlackRock, KKR as well as ADRPBF and GIC to $4.9 billion.
The leasing investment structure marks the first time that global and domestic institutional investors have deployed long-term capital into key ADNOC infrastructure assets.
ADNOC stated that BlackRock and KKR together hold 40 per cent, ADRPBF three per cent, GIC, Singapore’s sovereign wealth fund, holds a six per cent stake and ADNOC the remaining 51 per cent and sovereignty over the pipelines and management of pipeline operations remain with ADNOC.
ADNOC Oil Pipelines will lease ADNOC’s interest in 18 pipelines, transporting stabilised crude oil and condensate across ADNOC’s offshore as well as onshore upstream concessions for a 23-year period.
Over the last two years, the state-owned oil company has expanded its strategic partnership and co-investment model, creating new investment opportunities across all areas of its value chain.