ADNOC closes pipeline infrastructure investment with GIC

Combined investment by all investment parties totals almost $5bn and underlines quality of UAE as long-term investment destination

Sovereignty over the pipelines and management of pipeline operations remain with ADNOC. (Image for illustration only)
Sovereignty over the pipelines and management of pipeline operations remain with ADNOC. (Image for illustration only)

ADNOC announced that it has formally closed its $600mn pipeline infrastructure investment agreement with GIC, Singapore’s sovereign wealth fund.

This marks the successful closing of the total investment transaction, following the formal closing of the initial investment agreement with BlackRock and KKR on 27 June, and the subsequent closing of the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) investment on 1 August. The closing takes the combined investment in select ADNOC oil pipeline infrastructure by BlackRock, KKR, ADRPBF and GIC to $4.9bn.

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

BlackRock and KKR together hold 40%, ADRPBF 3%, GIC 6% and ADNOC the remaining 51% in the newly formed entity, ADNOC Oil Pipelines. Sovereignty over the pipelines and management of pipeline operations remain with ADNOC.

Ahmed Jasim Al Zaabi, group director, finance and investment, 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 calibre of these leading global and domestic investors underlines the quality and attractiveness of ADNOC’s infrastructure assets and our ability to efficiently structure and close value-creating investment opportunities for our partners and investors.

Over the last two years, ADNOC has significantly expanded its strategic partnership and co-investment model and created new investment opportunities across all areas of its value chain, while at the same time, more proactively managing its portfolio of assets and capital.

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