Adnoc secures funding for crude pipeline investment

Singapore’s GIC to invest $600mn; new entity Adnoc Oil Pipelines LLC created

The Abu Dhabi Oil Company (Adnoc) has announced that it has entered into an investment agreement with Singapore’s sovereign wealth fund, GIC.

GIC will invest $600 million in select Adnoc crude pipeline infrastructure, following BlackRock, KKR and the Abu Dhabi Retirement Pensions and benefits Fund (ADRPBF), which had previously agreed to invest $4.3 billion in these assets. This takes the combined lease-based investment of GIC, ADRPBF, KKR and BlackRock to $4.9 billion, stated GIC.

With this investment in place, GIC will acquire a 6% stake in a newly formed entity, Adnoc Oil Pipelines LLC, while BlackRock and KKR will have 40 per cent, ADRPBF with 3 per cent and Adnoc retaining the remaining 51 per cent. GIC also stated that sovereignty and management of the pipeline operations will remain with Adnoc.

Commenting on the agreement, Ahmed Jasim Al Zaabi, Group Director Finance and Investment at ADNOC said: “We are delighted that GIC, one of the world’s most renowned sovereign wealth funds and a leading long-term global investor, has joined KKR, BlackRock and the Abu Dhabi Pensions Fund in this pioneering investment in select ADNOC oil pipelines.”

“With nearly $5 billion of total investment, the overall agreement is testimony to the global investment community’s positive view on the attractiveness of both the UAE’s long-term potential, as well as the quality of ADNOC’s substantial infrastructure asset base,” he added.

Meanwhile, Ang Eng Seng, chief investment officer for infrastructure at GIC, said: “We are pleased to establish our partnership with ADNOC, a leading operator with a strong track record and an innovative approach.”

“As a global long-term investor, we are confident in the quality of ADNOC’s substantial oil pipeline network, which is a core element of Abu Dhabi’s energy ecosystem. We look forward to supporting ADNOC in the future growth of its oil pipeline business.”

A statement from GIC also stated that over the last two years, Adnoc has significantly expanded its strategic partnership and co-investment model. It has also created new investment opportunities across all areas of its value chain, while proactively managing its assets and capital, it stated.


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