ADNOC attracts AED 14.7 billion in foreign investment to the Oil Pipeline Company

24-02-2019 Media in \Abu Dhabi
Abu Dhabi National Oil Company (ADNOC) today announced the signing of a strategic partnership agreement in the field of pipeline infrastructure with KKR and BlackRock, two of the world’s leading investment institutions.
The agreement was signed by HE Dr. Sultan bin Ahmed Al Jaber, Minister of State and Chief Executive Officer of Abu Dhabi National Oil Company (ADNOC) and its Group of Companies, Lawrence De Vinc, Chairman and CEO of Black Rock, and Henry Cravis, Co-Chairman and Co-CEO For KKR at ADNOC’s headquarters.
According to the agreement, ADNOC Oil Pipeline, which was recently created as an individual limited liability company, will lease ADNOC’s stake in 18 pipelines transporting crude oil and condensates from ADNOC land and sea concessions for 23 years. ADNOC Pipeline LLC will receive a tariff payable by ADNOC for its share of crude oil and condensate pumped through pipelines, with a minimum commitment of these quantities.
The funds managed by BlackRock and KKR will form a consortium in which they will acquire a 40% stake in ADNOC Pipeline LLC, while ADNOC / Main / holds the remaining majority of 60% As well as the right to control and manage the pipeline operations. The agreement will yield AED 14.7 billion in advance revenues to ADNOC.
The long-term investment of BlackRock and KKR underscores the UAE and Abu Dhabi as a rapidly growing investment destination for overseas capital. The agreement marks the first time that leading global investment houses have invested capital in the main infrastructure assets of a national oil company in the Middle East.