- The UAE state-owned oil company has been making strategic partnerships for its expansion since 2017
- The proposed deal is scheduled to reach completion in Q3 of 2019
The Abu Dhabi National Oil Company (ADNOC), the renowned UAE-based state-owned oil firm, has reportedly signed a $4 billion pipeline infrastructure agreement with U.S-based investment companies, BlackRock, Inc. (BlackRock) and KKR & Co. Inc. (KKR).
Reports cite, the oil company has been making strategic partnerships for its expansion since 2017. Just a month ago, the company obtained a $5.8 billion in investment from Austria’s OMV as well as Italy’s Eni in exchange for a stake in its refining business unit to set up a brand-new trading operation that the three partners would own.
According to a report by Reuters, the latest agreement follows the company’s capital markets debut along with ADNOC Distribution’s IPO, Abu Dhabi Crude Oil Pipeline bond as well as other initiatives. A new entity, which would be named ADNOC Oil Pipelines, would be leasing the company’s interest in about 18 pipelines, moving condensates and crude oil across the company’s upstream concessions over a 23-year period.
The 18 pipelines span over a total length of more than 750 kilometers with a capacity of transferring over 13 million barrels on a daily basis. The funds managed by BlackRock & KKR would be forming a consortium that would be holding more than 40% stake in the proposed entity, while ADNOC would be owning the remaining stake. The UAE-based company would hold sovereignty over the management of the pipelines as well as their operations.
The CEO of BlackRock, Laurence Fink stated that the company believes the agreement between BlackRock, ADNOC and KKR would be followed by many such partnerships that would invest in the region’s growth in the future.
According to reports, the agreement is scheduled to reach completion in this year’s third quarter.