The deal follows the initial signing of the new midstream infrastructure partnership between Abu Dhabi National Oil Company (ADNOC), BlackRock and KKR in February 2019.
The Abu Dhabi National Oil Company (ADNOC) has signed a AED 1.1 billion ($300 million) follow-on pipeline infrastructure investment deal with the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF), following BlackRock and KKR who signed the initial investment agreement to inject AED 14.7 billion ($4 billion) into the midstream pipeline assets.
ADNOC stated that the investment deal will see ADRPBF acquiring a three per cent stake in a newly formed entity, ADNOC Oil Pipelines, with BlackRock and KKR together holding 40 per cent and ADNOC the remaining 57 per cent.
ADNOC Oil Pipelines leases ADNOC’s interest in 18 pipelines, transporting stabilised crude oil and condensate across ADNOC’s offshore as well as onshore upstream concessions for a period of 23 years.
HE Dr. Sultan Ahmed Al Jaber, the UAE Minister of State and ADNOC Group CEO, said, “We are delighted that Abu Dhabi Retirement Pensions and Benefits Fund have joined BlackRock and KKR in this pioneering infrastructure investment and this follow-on investment will generate solid, long term value and returns to ADRPBF stakeholders.”
Over the last two years, the state-owned oil company has expanded its strategic partnership and co-investment model, creating new investment opportunities across all areas of its value chain.
The transaction is expected to close in last quarter of 2019, subject to customary closing conditions and all regulatory approvals.