Investment giants BlackRock and KKR are closing in on a deal to sell their stake in the oil pipeline network of Abu Dhabi National Oil Company (Adnoc), reported Bloomberg, citing sources.

The stake is likely to be sold to the UAE sovereign wealth fund ADQ and is expected to raise more than Dh14.7bn ($4bn), including debt, the sources said.

BlackRock and KKR jointly own a 40% stake in Adnoc Oil Pipelines and they could divest the stake as early as this week.

According to some of the sources, ADQ is eager to make long-term investments in domestic infrastructure.

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By GlobalData

In 2019, BlackRock and KKR acquired a stake in Adnoc Oil Pipelines.

In the same year, Adnoc further decreased its ownership of Adnoc Oil to 51% following the sale of its stake to Singapore-based GIC and Abu Dhabi Retirement Pensions & Benefits Fund.

Adnoc, ADQ, BlackRock, and KKR representatives declined to comment on the development.

If an agreement is reached, it would add to the list of Abu Dhabi’s list of potential deals.

Earlier this month, it was reported that Adnoc is in talks with OMV, an Austrian energy company, to merge the Borouge and Borealis businesses.

The merger of Borouge and Borealis is expected to create a chemicals and plastics company worth more than $30bn.

The energy business is also vying to acquire German polymers manufacturer Covestro in a $12bn (€10.8bn) deal.