Abu Dhabi’s ADNOC inks $600m pipeline deal with Singapore sovereign wealth fund

Abu Dhabi National Oil Company (ADNOC) has formally closed a $600m pipeline infrastructure investment agreement with Singapore’s sovereign wealth fund, GIC.

The ADNOC-GIC deal brings the combined investment in select ADNOC oil pipeline infrastructure by GIC and BlackRock, KKR and Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) to $4.9bn.

According to company officials, the leasing investment structure marks the first time that leading, global and domestic institutional investors have deployed long-term capital into key ADNOC infrastructure assets.

In the newly-formed entity, known as ADNOC Oil Pipelines, BlackRock and KKR together hold 40 per cent, ADRPBF 3 per cent, GIC 6 per cent and ADNOC the remaining 51per cent.

ADNOC retains control of pipeline management.

Ahmed Jasim Al Zaabi, group director of finance and investment at ADNOC said: “The successful final closing of this landmark transaction is a clear vote of confidence by the global investment community in both the UAE and ADNOC as attractive investment destinations.”

The deal is the latest for ADNOC. In July, the company signed a partnership framework deal worth up to $12bn with China’s Wanhua Chemical Group for collaboration in the downstream sector.

Read: Abu Dhabi’s ADNOC, China’s Wanhua Chemical sign deal potentially worth $12bn

So-called downstream operations in the oil industry can include refining, sales and shipping.