Media ININ Economy We Trust
14-04-2019 Media in\ Abu Dhabi
Abu Dhabi National Oil Company (ADNOC) announced today that it has signed a new strategic investment agreement in the field of infrastructure for oil transmission and distribution pipelines with the Abu Dhabi Retirement Pensions and Benefits Fund, under which the Fund will invest 1.1 billion dirhams (300 million US dollars).
The move comes after Blackrock and KKR signed an initial agreement with ADNOC last February to invest 14.7 billion dirhams ($ 4 billion) in the assets of oil transport and distribution pipelines.
The agreement was signed by 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, and HE Riyad Al Mubarak, Chairman of ADNOC Pension and Retirement Benefits Fund.
Under the agreement, the fund will receive a 3% stake in ADNOC Pipeline LLC, which was newly created as a single limited liability company, while Blackrock and KKR together account for 40% ADNOC / main / share of the remaining majority of 57%. ADNOC Pipeline will lease ADNOC’s stake in 18 pipelines transporting crude oil and condensates from ADNOC’s land and sea concessions for 23 years.
ADNOC Pipeline LLC has a tariff paid by ADNOC for its share of crude oil and condensate pumped through pipelines, with a minimum commitment of these quantities. ADNOC reserves the right to control and manage the pipeline operations.
This innovative leasing investment structure with the three investors marks the first time that leading international and local investment institutions have invested long-term capital in the UAE’s major infrastructure assets.
Securing a high-level investment partner, such as the Abu Dhabi Retirement Pensions and Pensions Fund, highlights the attractiveness and potential of these unique energy assets to create long-term value for the global investment community. In addition to meeting IFAD’s infrastructure investment policies and long-term revenue objectives, the agreement is another milestone in IFAD’s strategy to capitalize on attractive infrastructure assets in the UAE. The agreement also underscores the vital role played by ADNOC as a key catalyst in driving economic growth and attracting investments to the country.
