Abu Dhabi: Abu Dhabi National Oil Company (Adnoc) on Thursday announced that it has closed its $4 billion infrastructure investment agreement with the US based firms BlackRock and KKR on boosting midstream pipeline assets for transporting crude in the UAE.
The transaction was originally announced in February of this year and following the deal, the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) agreed to invest a further $300 million. The ADRPBF investment is due to close in the next quarter.
The agreement will see BlackRock and KKR acquire a combined 40 per cent stake in a newly formed entity, Adnoc Oil Pipelines with ADRPBF acquiring 3 per cent. Adnoc will hold the remaining 57 per cent.
“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,” said Ahmad Jasim Al Zaabi, Group Director Finance and Investment at Adnoc in a statement.
“It also highlights the quality of Adnoc’s midstream pipeline assets and our innovative approach to structuring value-creating investment opportunities for our partners and investors.”
The collection of 18 pipelines being leased by AdnocOil Pipelines has a total length of over 750km, and a total aggregate capacity of approximately 13,000 Mbblpd (gross), according to Adnoc.
These assets represent key midstream infrastructure for Abu Dhabi’s energy ecosystem, allowing for the vast majority of Abu Dhabi’s crude oil production to be transported from Adnoc’s onshore and offshore upstream assets, to Abu Dhabi’s key takeaway outlets and terminals for conversion to other high-value products, or on to global energy markets.