Page 6 - MEOG Week 26
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MEOG PIPeLIneS & tranSPort MEOG
BlackRock and KKR’s ADNOC Pipelines deal finalised
Uae
ABU Dhabi National Oil Co. (ADNOC) announced last week that it had nalised the $4bn pipeline investment deal reached with BlackRock and KKR in February.
Following the news, the Abu Dhabi Retire- ment Pensions and Bene ts Fund (ADRPBF) agreed to invest a further $300mn.
e deal gives the two US asset management rms a combined 40% stake in a large part of ADNOC’s domestic pipeline network. ADRP- BF’s funds bought it a 3% stake from ADNOC’s customary 60% holding, which fell to 57% as a result. e o cial statement said that “ADNOC Oil Pipelines leases ADNOC’s interest in 18 pipelines, transporting stabilised crude oil and condensate across ADNOC’s offshore and onshore upstream concessions, for a 23-year period.”
it will receive a tari payable by ADNOC for “its share of volume of crude and condensate that ows through the pipelines, backed by min- imum volume commitments”.
However, ADNOC will retain sovereignty over the pipelines and management of pipeline operations. e deal is unique in being the rst time global institutional investors have acquired interests in the midstream infrastructure of
the region’s national oil companies (NOCs). it also aligns with wider moves by ADNOC over the past two years to open up new parts of the business to foreign investment and to diversify funding sources.
e pipelines were said to cover a total length of 750 km and have total aggregate capacity of 13mn barrels per day (bpd). ey carry crude and condensate to key processing facilities or for export from across the emirate’s onshore and o shore oil elds, operated by ADNOC in joint venture with multiple international oil compa- nies (iOCs). BlackRock and KKR will invest through their Global Energy & Power infra- structure Fund series and Global infrastructure investors fund respectively.
ADNOC’s stake will be held by another newly established entity called ADNOC infrastruc- ture. is will also comprise Abu Dhabi Crude Oil Pipeline (ADCOP), the wholly owned sub- sidiary that owns and operates the parent rm’s crude oil pipeline from Abu Dhabi’s oil elds to the eastern port of Fujairah.
Bank of America Merrill Lynch and JP Mor- gan were ADNOC’s financial advisers, while Moelis & Co. acted as the independent nancial adviser.
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w w w . N E W S B A S E . c o m Week 26 02•July•2019
