The Abu Dhabi National Oil Company (ADNOC) has agreed with the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) on a follow-on pipeline infrastructure investment agreement, ADNOC announced on April 14.
The agreement was signed in a ceremony held at ADNOC’s headquarter and was witnessed by Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC CEO, and Riyad Al Mubarak, Abu Dhabi Retirement Pensions and Benefits Fund Chairman.
“By partnering with the Fund, ADNOC will play an important role in ensuring the financial wellbeing of the UAE’s people,” Al Jaber said.
ADRPBF plans to invest around $300 million, followed by BlackRock and KKR that signed a $4 billion agreement in February, in the midstream pipeline assets.
Under the agreement, ADRPBF will own a 3% stake in the newly formed entity, ADNOC Oil Pipelines, Sole Proprietorship LLC ‘ADNOC Oil Pipelines’, with BlackRock and KKR together holding 40% and ADNOC the remaining 57%.
The transaction is expected to close in Q4 2019 and is subject to customary closing conditions and regulatory approvals.
The investment structure of the agreement represents the first time where leading, global and domestic institutional investors have deployed long-term equity capital into midstream infrastructure assets of a national oil company in the United Arab Emirates (UAE).