ADNOC closes $4bn pipeline deal with KKR and BlackRock

Abu Dhabi National Oil Company (ADNOC) said on Thursday it had completed a deal for investors BlackRock and KKR to buy a 40 per cent stake in ADNOC Oil Pipelines for $4bn.

Under the deal, the pipeline company will lease ADNOC’s interest in 18 pipelines transporting crude oil and condensates across ADNOC’s upstream concessions for 23 years.

KKR and BlackRock’s investment, which was first announced in February, was funded through their infrastructure funds and financed by a syndicate of banks, ADNOC said in a statement.

Following the February announcement, the Abu Dhabi Retirement Pensions and Benefits Fund, ADRPBF, agreed to invest a further $300m, according to the UAE’s state media agency, WAM. The ADRPBF investment is due to close in the next quarter.

As well as BlackRock and KKR acquiring a combined 40 per cent stake in ADNOC Oil Pipelines, ADRPBF will acquire 3 per cent, with ADNOC holding the remaining 57 per cent.

The collection of 18 pipelines has a total length of over 750km, and a total aggregate capacity of approximately 13m barrels per day (gross).