BlackRock, KKR Acquire 40% Stake in ADNOC Oil Pipelines | Glenrock Gazette

BlackRock, KKR Acquire 40% Stake in ADNOC Oil Pipelines

Abu Dhabi National Oil Company (ADNOC) said early on Thursday that it had closed an infrastructure investment agreement under which BlackRock (BLK), the world’s largest asset manager, and a US-based private equity firm KKR (KKR) would purchase a 40% stake in an oil pipeline entity for $4 billion.

The company said in a statement that the deal would see BlackRock and KKR acquire a combined 40% stake in a newly formed entity, ADNOC Oil Pipelines. The Abu Dhabi Retirement Pensions and Benefits Fund, which on Thursday agreed to invest a further $300 million, will have a 3% stake and the remaining 57% will be with the Abu Dhabi National Oil Company.

KKR and BlackRock’s investment, which was funded through their global infrastructure funds and financed by a syndicate of international banks, was “oversubscribed” during its syndication, the company said in a statement.

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The collection of 18 pipelines being leased by ADNOC Oil Pipelines — transporting crude oil and condensate across ADNOC’s offshore and onshore upstream concessions for a 23-year period — has a total length of more than 750 kilometers and a total aggregate gross capacity of about 13,000 million barrels per day.

“These assets represent key midstream infrastructure for Abu Dhabi’s energy ecosystem, allowing for the vast majority of Abu Dhabi’s crude oil production to be transported from ADNOC’s onshore and offshore upstream assets, to Abu Dhabi’s key takeaway outlets and terminals for conversion to other high-value products, or on to global energy markets,” the statement noted.