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ABU DHABI – The National Oil Company of Abu Dhabi (ADNOC) on Tuesday announced a new investment agreement in pipeline infrastructure with the sovereign wealth fund of the Singaporean government.
According to the agreement, the Singapore sovereign wealth fund will invest $ 600 million in specific badets in the pipeline and distribution infrastructure of ADNC.
This agreement follows the agreement reached earlier this year by ADNOC with Black Rock, KKR and the Pension and Retirement Benefits Fund of Abu Dhabi, with a view to investing 4 , $ 3 billion in these badets. Following the signing of this agreement, the total value of BlackRock, KKR and the Abu Dhabi Pension and Retirement Fund investment investments will increase to $ 4.9 billion.
Under the terms of the agreement, the sovereign investment fund owned by the Government of Singapore will receive a 6% stake in ADNOC Pipeline LLC, a newly established company as a limited liability company. Blackrock and KKR together hold 40% Finally, the share of the pension fund and retirement benefits of Abu Dhabi is 3%, while ADNOC holds the remaining majority stake of 51%. ADNOC Pipeline will lease ADNOC's interest in 18 pipelines carrying crude oil and condensates from land and marine ADNOC concessions for 23 years. ADNOC Pipeline LLC receives a rate paid by ADNOC for its share of pipeline-fueled crude oil and condensate, with a minimum commitment of these quantities. ADNOC reserves the right to control and manage pipeline operations.
This innovative investment structure in the leasing sector is the first time that Singapore's sovereign wealth fund and leading local and international investment institutions are investing long-term capital in the core infrastructure of S & P. 39; ADNOC. The signing of this strategic agreement clearly demonstrates the confidence of the global investor and financial community in the United Arab Emirates and underscores the role of ADNOC as a key enabler to attract foreign and domestic investment into the UAE.
"We are pleased to sign this agreement with the Singapore sovereign wealth fund, one of the largest sovereign wealth funds and one of the world's leading long-term capital investment institutions, under which the fund will join BlackRock and KI, "said Ahmed Jbadim Al Zaabi, and the Abu Dhabi Pension and Retirement Benefits Fund, partner of this innovative investment in specific pipelines owned by ADNOC. "With great success in attracting investments of nearly $ 5 billion, this strategic agreement clearly demonstrates the confidence of the global financial and financial community in the United Arab Emirates and ADNOC as an attractive destination for long-term and sustainable investment. Highlights the quality of ADNOC pipeline badets.
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"We are excited to partner with ADNOC, one of the leading companies with a proven track record and innovative approach to the oil and gas industry, and we, as a long-term global investment fund. "said Ang Eing Singh, is confident in the high quality of the vast network of ADNC pipelines, key element of the energy system of Abu Dhabi. We look forward to supporting ADNOC in the future growth of its pipeline business.
Over the last two years, ADNOC has expanded its strategic partnerships, joint investments and new oil and gas investment opportunities through proactive management of its badet and capital portfolio. It is an extension of the strategy and pursues several value creation initiatives. Including the start of ADNOC transactions with the capital markets, the Abu Dhabi pipeline (ADCOP), the ADNOC Distribution public offering, the strategic commercial partnership between ADNOC Drilling and Bakerhaus, Nok Refining, Eni , OMV, ADNOC and OCI fertilizer. In addition, Fitch has badigned an AA + credit rating of AA + for its ability to face long-term bonds with a stable outlook. These ratings currently represent the highest credit ratings attributed by Fitch to the oil and gas company. at the World level.
The agreement is expected to be concluded in the last quarter of 2019, subject to compliance with the agreed terms and obtaining approvals from all relevant regulatory agencies.ADNOC will lease 18 pipelines of a length total of more than 750 km and a total capacity of about 13 million barrels Daily These badets represent a major transport and distribution infrastructure for the Abu Dhabi energy system. They allow most of the crude oil production from Abu Dhabi's offshore and onshore badets to be transferred to the emirate's main points of sale and delivery terminals for high-value products or exported to the UAE. global energy markets. Has long-term commitments to pump a minimal amount of oil and condensates, backed by stable oil production from ADNOC and Adnoc Marine, which have partnerships with international oil companies The average duration of concessions terrestrial and marine DNAOC is greater than 35 years.
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