Abu Dhabi National Oil Company says it has entered into a follow-on pipeline infrastructure investment agreement with GIC
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.”For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.