BlackRock, KKR sell ADNOC oil pipeline stake to Lunate

Abu Dhabi alternative investor Lunate on Wednesday said it acquired a 40 per cent stake in Abu Dhabi National Oil Company’s (ADNOC) oil pipeline infrastructure assets from BlackRock and KKR.

The acquisition was made by one of Lunate’s funds, which the company said was executed through the purchase of a 100 per cent stake in a special purpose vehicle jointly held by the two companies’ managed funds, Lunate said in a statement.

The terms and value of the deal were not disclosed. BlackRock and KKR did not comment on the statement.

ADNOC’s landmark deal

BlackRock and KKR bought the stake for $4bn in 2019 in a landmark deal, becoming the first foreign investors to acquire infrastructure assets of a national oil company in the Gulf.

ADNOC Oil Pipelines was set up in 2019 to lease ADNOC‘s ownership interests in 22 pipelines, transporting crude oil and condensates across ADNOC‘s upstream concessions for a 23-year period.

The pipelines include 17 onshore and 5 offshore pipelines across the region, covering 806 kilometres with a total capacity of 18 million barrels per day.

Lunate is part of a business empire overseen by Sheikh Tahnoun bin Zayed Al Nahyan, the UAE’s national security adviser and brother of UAE President Sheikh Mohammed bin Zayed Al Nahyan.

Sheikh Tahnoun also chairs the Abu Dhabi Investment Authority, estimated by wealth fund tracker Global SWF to manage $968bn in assets, and ADQ, Abu Dhabi’s third-largest wealth fund.

The company, which manages $105bn of assets, invests across private markets including buyouts, growth equity, early and late-stage venture capital, private credit, real assets, and public equities and public credit, according to its website.

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