Page 6 - MEOG Week 31
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MEOG PiPeLines & transPort MEOG
Singapore’s GIC joins ADNOC Oil Pipelines
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ABu Dhabi National Oil Co. (ADNOC) announced this week that Singapore’s sover- eign wealth fund GIC had acquired a 6% stake in the new ADNOC Oil Pipelines joint venture for $600mn. e deal follows the nalisation in June of $4bn of investment from Blackrock and KKR for a 40% share and $300mn from Abu Dhabi Retirement Pensions and Bene ts Fund (ADRPBF) to acquire a 3% stake.
ADRPBF’s funds bought it a 3% stake from ADNOC’s customary 60% holding, which slipped to 57% as a result and has now dropped to 51%. ADNOC said that the latter deal was anticipated reaching nancial close by the end of the year.
A statement in June said that “ADNOC Oil Pipelines leases ADNOC’s interest in 18 pipe- lines, transporting stabilised crude oil and con- densate across ADNOC’s o shore 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”.
BlackRock and KKR invested through their Global Energy & Power Infrastructure Fund
series and Global Infrastructure Investors fund respectively. However, ADNOC will retain sov- ereignty over the pipelines and management of pipeline operations.
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.
The deal is unique in being the first 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 are said to cover a total length of 750km and have total aggregate capacity of 13 million bpd.
ey carry crude and condensate to key pro- cessing facilities or for export from across the emirate’s onshore and o shore oil elds, operated by ADNOC in JV with multiple IOCs.
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w w w . N E W S B A S E . c o m Week 31 06•August•2019
