Abu Dhabi National Oil Company (ADNOC) has reportedly closed a $600-million pipeline infrastructure investment agreement with GIC, Zawya reported.
The deal with the Singaporean sovereign wealth fund raises investments in select ADNOC oil pipeline infrastructure by BlackRock, KKR, and the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF), alongside GIC, to $4.9 billion.
ADNOC, BlackRock, and KKR signed an 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. Now, GIC is set to invest another $600 million.
A new entity was recently formed, under the name ADNOC Oil Pipelines, of which BlackRock and KKR own a combined 40% stake, while ADRPBF and GIC hold 3% and 6% stakes, respectively, with the remaining majority stake of 51% being owned by ADNOC, which also maintains sovereignty and operations management over the pipelines.
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.