September 2019, Vol. 246, No. 9
Global News
UAE’s ADNOC Pipeline Investment Deal Reaches Nearly $5 Billion
Singapore’s sovereign wealth fund (GIC) is investing $600 million in Abu Dhabi National Oil Company’s (ADNOC) crude pipeline infrastructure, raising total outside investment in the newly formed ADNOC Oil Pipelines to $4.9 billion.
The GIC deal follows a combined investment of $4 billion by BlackRock and KKR and an additional $300 million by the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF).
In exchange for the nearly $5 billion investments, ADNOC is leasing 750 kilometers (465 miles) across 18 of its pipelines over a 23-year period. The combined portion of pipelines being leased move more than 13 MMbpd of crude.
ADNOC Oil Pipelines will retain ownership and management of the pipelines, which transport crude from both onshore and offshore fields to its own export and refining facilities and will receive a tariff from ADNOC for how much crude and condensate it transports. As part of the framework, minimum volume commitments have been put in place. P&GJ
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