Media ININ Economy We Trust
Media IN ABU DHABI, 27th June, 2019 (WAM)
Abu Dhabi National Oil Company completed its $4bn deal with BlackRock and KKR who will in exchange have a 40 per cent stake in its pipeline infrastructure. Adnoc said in a statement on Thursday that the infrastructure funds financed by a syndicate of international banks through which the private equity firms invested were oversubscribed during syndication.
In February, BlackRock, the world’s largest asset manager as well as KKR paid $4bn upfront through a special purpose vehicle to invest in 18 of Adnoc’s pipelines, totalling 750 kilometres in length and with a capacity of 13 million barrels per day.
The infrastructure will be leased for 23 years to the companies through a newly formed entity Adnoc Oil Pipelines, in which the private equity firms will hold a 40 per cent stake, with Adnoc remaining the majority stakeholder.
The agreement marked the first time that leading international financial institutions were able to make investments related to the company’s midstream assets following a competitive selection process by Adnoc.
The Abu Dhabi Retirement Pensions and Benefits Fund later contributed $300m to the SPV, with the financial closure for that deal expected in the forthcoming quarter.
As part of the agreement, Adnoc will retain absolute sovereignty and management of the pipelines, which transport stabilised crude and condensate from its onshore and offshore fields to export and refining facilities.
