ADNOC completes $4 billion pipeline infrastructure deal
According to Arab News, Abu Dhabi National Oil Company (ADNOC) has sealed a $4 billion (€3.5 billion) midstream pipeline infrastructure deal with US investment firms KKR and BlackRock.
The Arab News reports that new entity ADNOC Oil Pipelines will lease the oil firm’s interest in 18 pipelines, transporting crude oil and condensates across its offshore and onshore upstream concessions for a period of 23 years.
Whilst ADNOC will have sovereignty over the pipelines and manage the pipeline operations, funds will be managed by KKR and BlackRock and will form a consortium to hold a 40% stake in the entity.
The deal is expected to close in the third quarter of 2019 and will result in upfront proceeds of around $4 billion, reports Arab News.
“We believe that today’s agreement among ADNOC, BlackRock and KKR will be followed by many more such partnerships to invest in the future growth of the region,” BlackRock CEO and chairman Laurence Fink said.