The Abu Dhabi National Oil Company (Adnoc) has completed its pipeline infrastructure investment agreement with investors BlackRock and KKR.
The transaction, which was originally announced in February, marked the first midstream infrastructure partnership by the two investors in the UAE.
According to the company, the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) agreed to invest an additional $300m, which is due to close in the next quarter.
The latest agreement will see BlackRock and KKR acquire a joint 40% interest in a newly formed entity, ADNOC Oil Pipelines, with ADRPBF owning 3%. The remaining 57% stake will be with Adnoc.
Adnoc group director of finance and investment Ahmed Jasim Al Zaabi said: “The successful closing of this pioneering transaction and the oversubscribed financing is a clear vote of confidence by the global investment and finance community in both the UAE and ADNOC as an attractive investment destination.
“It also highlights the quality of Adnoc’s midstream pipeline assets and our innovative approach to structuring value-creating investment opportunities for our partners and investors.”
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By GlobalDataThe 18 pipelines being leased by the new entity stretch over 750km, and have a total aggregate gross capacity of approximately 13,000Mbblpd.
The deal represents a major step in Adnoc’s commercially focused 2030 smart growth strategy, which aims for active management of capital and expanding portfolio of assets.
