UAE – Mubasher: Abu Dhabi National Oil Company (Adnoc) announced it has officially entered into a $600 million pipeline infrastructure investment agreement with GIC, Singapore’s sovereign wealth fund.
This agreement comes following previous investments by BlackRock, KKR, and the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) in the Abu Dhabi oil giant's pipeline infrastructure, according to a press release.
Accordingly, the combined investments in the pipeline infrastructure reached a total of $4.9 billion, ADNOC said.
Under the agreement, BlackRock and KKR together hold a 40% stake in the newly established entity ADNOC Oil Pipelines, while ADRPBF and GIC hold 3% and 6% stakes, respectively.
The remaining 51% stake is owned by ADNOC, with the sovereignty over the pipelines and the management of pipeline operations remaining with it.
Moreover, ADNOC Oil Pipelines will lease 18 of ADNOC’s pipelines for 23 years to transport crude oil and condensate from the state-owned oil company’s onshore and offshore fields.
These pipelines total 750 kilometres in length and have a capacity of 13 million barrels per day.
Adnoc Oil Pipelines will receive a tariff from ADNOC for the crude and condensate amount it transports line with the set minimum volume commitments.
