The Abu Dhabi National Oil Company (ADNOC) has finalized its pioneering pipeline infrastructure investment agreement with fintech provider BlackRock and KKR, a global investment firm.
BlackRock and KKR will acquire a combined 40 percent stake in a newly-formed entity, ADNOC Oil Pipelines. ADRPBF will acquire 3 percent, and ADNOC will hold the remaining 57 percent.
In February, the two firms agreed to invest an initial $4 billion into the pipeline assets and Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) funneled $300 million more into the deal. The ADRPBF investment is due to close in the next quarter.
ADNOC Oil Pipelines leases ADNOC’s interest in 18 pipelines that span 750 kilometers (466 miles) and transport a total aggregate capacity of approximately 13,000 barrels per day of stabilized crude oil and condensate across ADNOC’s offshore and onshore upstream concessions, according to ADNOC.
The investment structure marks the first time that leading global and domestic institutional investors have deployed long-term equity capital into key midstream infrastructure assets of a national oil company in the UAE, according to ADNOC.
