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Singapore’s sovereign wealth fund invests in ADNOC pipelines

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The Abu Dhabi National Oil Company (ADNOC) has inked a pipeline infrastructure investment agreement with Singapore’s sovereign wealth fund, GIC.

As part of the deal, GIC will invest $600 million (€543 million) in select ADNOC crude pipeline infrastructure. The investment follows agreements signed earlier this year by BlackRock, KKR and the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF), to invest $4.3 billion (€3.9 billion) in the assets.

Through the agreement, GIC will acquire a 6% stake in ADNOC Oil Pipelines, a newly formed entity, with BlackRock and KKR holding 40%, ADRPBF 3% and ADNOC the remaining 51%. ADNOC will retain authority and management of the pipelines.

Commenting on the transaction, Ahmed Jasim Al Zaabi, group director, finance and investment at ADNOC, said: “We are delighted that GIC, one of the world’s most renowned sovereign wealth funds and a leading long-term global investor, has joined KKR, BlackRock and the Abu Dhabi Pensions Fund in this pioneering investment in select ADNOC oil pipelines.

“With nearly $5 billion [€4.5 billion] of total investment, the overall agreement is testimony to the global investment community’s positive view on the attractiveness of both the UAE’s long-term potential, as well as the quality of ADNOC’s substantial infrastructure asset base.”

Ang Eng Seng, chief investment officer for infrastructure at GIC, added: “We are pleased to establish our partnership with ADNOC, a leading operator with a strong track record and an innovative approach. As a global long-term investor, we are confident in the quality of ADNOC’s substantial oil pipeline network, which is a core element of Abu Dhabi’s energy ecosystem. We look forward to supporting ADNOC in the future growth of its oil pipeline business.”

The transaction is expected to close by the end of 2019, subject to customary closing conditions and regulatory approvals.