Singapore's GIC to invest $600m in Adnoc's pipelines

Abu Dhabi National Oil Company says it has entered into a follow-on pipeline infrastructure investment agreement with GIC
Singapore's GIC to invest $600m in Adnoc's pipelines
By Sam Bridge
Tue 30 Jul 2019 04:23 PM

Abu Dhabi National Oil Company (Adnoc) announced on Tuesday that it has entered into a further follow-on pipeline infrastructure investment agreement with GIC, Singapore’s sovereign wealth fund.

GIC will invest $600 million in select Adnoc crude pipeline infrastructure, following BlackRock, KKR and the Abu Dhabi Retirement Pensions and Benefits Fund, who earlier this year signed agreements to invest $4.3 billion in these assets.

This takes the combined lease-based investment of GIC, ADRPBF, KKR and BlackRock to $4.9 billion.

The follow-on investment agreement will see GIC acquire a 6 percent stake in a newly formed entity, Adnoc Oil Pipelines, with BlackRock and KKR together holding 40 percent, ADRPBF 3 percent and Adnoc the remaining 51 percent.

Sovereignty over the pipelines and management of pipeline operations remain with Adnoc, a statement said, adding that the latest transaction is expected to close before the end of 2019.

Ahmed Jasim Al Zaabi, group director finance and investment at Adnoc said: “We are delighted that GIC, one of the world’s most renowned sovereign wealth funds and a leading long-term global investor, has joined KKR, BlackRock and the Abu Dhabi Pensions Fund in this pioneering investment in select ADNOC oil pipelines.

“With nearly $5 billion of total investment, the overall agreement is testimony to the global investment community’s positive view on the attractiveness of both the UAE’s long-term potential, as well as the quality of ADNOC’s substantial infrastructure asset base.”

Ang Eng Seng, chief investment officer for infrastructure at GIC, added: “We are pleased to establish our partnership with Adnoc... As a global long-term investor, we are confident in the quality of Adnoc’s substantial oil pipeline network, which is a core element of Abu Dhabi’s energy ecosystem. We look forward to supporting Adnoc in the future growth of its oil pipeline business.”

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