ADNOC, BlackRock, KKR Close Infrastructure Agreement

ADNOC, BlackRock, KKR Close Infrastructure Agreement

The Abu Dhabi National Oil Company (ADNOC) announced that it has closed a pipeline infrastructure investment agreement with BlackRock and KKR.

The companies signed the initial agreement in February 2019 to invest $4 billion into the midstream pipeline assets. The Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) then agreed to further invest $300 million, which is expected in Q4 2019.

“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,” Ahmed Jasim Al Zaabi, Group Director Finance and Investment at ADNOC said.

Under the agreement, a new entity is formed, ADNOC Oil Pipelines, in which ADNOC dominates a 57% stake, while BlackRock and KKR own a combined 40% stake, and ADRPBF owns 3%.

ADNOC Oil Pipelines leases 18 pipelines with a total length of over 750 km, and a total aggregate capacity of approximately 13,000 million barrels per day (b/d), transporting stabilized crude oil and condensate across ADNOC’s offshore and onshore upstream concessions, for a 23-year period.

According to the Emirati oil giant, this agreement comes in line with ADONC’s partnership and co-investment model to create new investment opportunities across all areas of its value chain, while at the same time, more proactively managing its portfolio of assets and capital.


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