Abu Dhabi pension fund to invest Dh1.1 billion in Adnoc Oil Pipelines
Abu Dhabi pension fund to acquire 3 per cent stake in midstream pipeline company
Dubai: The Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) has agreed to invest Dh1.1 billion ($300 million) in Adnoc Oil Pipelines after similar moves from KKR and Blackrock.
Through this, ADRPBF will acquire 3 per cent stake in the midstream pipeline company, while KKR and Blackrock hold 40 per cent, and Adnoc has 57 per cent stake in the company.
In February, BlackRock and KKR agreed to invest Dh14.7 billion in the company. Adnoc Oil Pipelines leases Adnoc’s interest in 18 pipelines, transporting stabilised crude oil and condensate across Adnoc’s offshore and onshore upstream concessions.
“This follow-on investment will generate solid, long term value and returns to Abu Dhabi Retirement Pensions and Benefits Fund stakeholders. The addition of the Abu Dhabi Pensions Fund adds further validation of our wise leadership’s guidance to create and enhance value across our business by forming long term, mutually beneficial strategic partnerships. In addition, it demonstrates Adnoc’s progressive and smart approach to unlocking value from its portfolio of assets while retaining control over their ownership and operation,” Dr. Sultan Bin Ahmad Sultan Al Jaber, Minister of State said in a statement.
The transaction is expected to close in the fourth quarter of 2019.