The Abu Dhabi National Oil Company (ADNOC) announced that it entered a follow-on pipeline infrastructure investment agreement with the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF). ADRPBF will invest AED 1.1 billion (USD 300 million), following BlackRock and KKR who in February of this year signed the initial investment agreement to invest AED 14.7 billion (USD 4 billion) into the midstream pipeline assets.
Mainly, this follow-on investment agreement will see ADRPBF hold a 3% stake in ADNOC Oil Pipelines – Sole Proprietorship, with BlackRock and KKR together holding 40% and ADNOC the remaining 57%.
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ADNOC Oil Pipelines leases ADNOC’s interest in 18 pipelines, transporting stabilized crude oil and condensate across ADNOC’s offshore and onshore upstream concessions, for a 23-year period.
Moreover, the collection of 18 pipelines leased by ADNOC Oil Pipelines has a total length of over 750km, and a total aggregate capacity of approximately 13,000 Mbblpd (gross). The pipelines enable Abu Dhabi’s crude oil production to be transferred from ADNOC’s onshore and offshore upstream assets, to Abu Dhabi’s takeaway outlets and terminals for conversion.
Also, ADNOC oil pipelines has a tariff payable by ADNOC for its share of volume of crude and condensate that flows through the pipelines, backed by minimum volume commitments. Sovereignty over the pipelines and management of pipeline operations remain with ADNOC.
Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO commented
We are delighted that Abu Dhabi Retirement Pensions and Benefits Fund have joined BlackRock and KKR in this pioneering infrastructure investment. Abu Dhabi Retirement Pensions and Benefits Fund is a trusted custodian and investor of our citizen’s savings and long term prosperity. By partnering with the Fund, ADNOC will play an important role in ensuring the financial wellbeing of the UAE’s people.
Riyad Al Mubarak, Abu Dhabi Retirement Pensions and Benefits Fund Chairman, stated that the investment reassures the variety of the fund’s investments.
The transaction is expected to close in Q4 2019, subject to customary closing conditions and all regulatory approvals.
