Page 5 - MEOG Week 26

MEOG Commentary MEOG

CEO Marco Alvera commented. uAE and this transaction presents a unique
The uAE is not the only Middle Eastern opportunity to invest in an asset of this quality
country looking to use its infrastructure to and importance, while also supporting ADNOC
attract new capital. In Saudi Arabia, Saudi Ara- in their smart growth strategy.”
mco is considering a similar lease agreement for “This transaction underscores GIP’s strategy
its oil pipeline unit that will raise up to $10bn of investing in high quality infrastructure assets
of equity. Pipelines are also going up for sale in and developing long term strategic partnerships
other regions, with Portuguese oil company Galp with industry leaders.”
reported to be considering the divestment of its The deal also provides a unique opportu-
gas distribution assets. nity to benefit from Abu Dhabi’s world class gas
However, the scale and profitability of state- reserves and unit costs, which are among the
owned assets in the Middle East present a rather lowest anywhere in the world.
more compelling opportunity. Considering the success ADNOC has had in
monetising state assets while retaining control, it
smart growth is little surprise to see the tactics being emulated
The chairman and managing partner of GIP elsewhere in the region, and it is likely that this
Adebayo Ogunlesi said the gas network was “a trend will continue through the mid- and down-
core piece of midstream infrastructure in the stream in particular.™

Week 26 01•July•2020 www. NEWSBASE .com P5