Sovereign Wealth Fund Invests $ 600 Million in ADNOC Pipelines

Wednesday, July 31, 2019
–
No
Number [
14855]

The Singapore Fund joins BlackRock, KKR and the Abu Dhabi Pension and Retirement Benefits Fund as investment partners in specific pipelines owned by ADNOC (Middle East)

Abu Dhabi: Middle East

The Abu Dhabi National Oil Company (ADNOC) has announced a new investment agreement in pipeline infrastructure with the sovereign fund of the Government of Singapore. According to the agreement, the Singapore sovereign wealth fund will invest $ 600 million in specific badets in the pipeline and distribution infrastructure of ADNC.
The signing of the agreement comes after ADNOC signed earlier this year agreements with Blackrock, KKR and the Abu Dhabi Pension and Retirement Fund to invest 4, $ 3 billion in these badets. Following the signing of this agreement, the total value of BlackRock, KKR and Abu Dhabi pension and retirement fund investments based on rents will increase to $ 4.9 billion.
Under the agreement, the sovereign investment fund owned by the Singaporean government will receive 6% of the capital of the newly formed ADNOC pipeline as a single limited liability company. Blackrock and KKR together hold a 40% interest. The share of pensions and benefits in Abu Dhabi is 3%, while the remaining majority share of ADNOC (51%) remains at 51%.
ADNOC announced that it was going to lease the ADNOC stake in 18 pipelines carrying crude oil and condensates from the land and maritime concessions of ADNOC for a period of 23 years. ADOC Oil Pipeline receives a ADNOC paid for its share of crude oil and condensate ADNOC reserves the right to control and manage pipeline operations, with a minimum commitment of these quantities.
This leasing investment structure represents the first time that Singapore 's Sovereign Investment Fund and local and international investment institutions are investing long – term capital in badet – based badets. basic infrastructure of ADNOC. The signing of this strategic agreement clearly demonstrates the confidence of the global investor and finance community in the United Arab Emirates and underscores the role of ADNOC as a key enabler for attracting foreign and domestic investment into the UAE.
"We are delighted to sign this agreement with the Sovereign Wealth Fund of Singapore, 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 KK, "said Ahmed Al Zaabi, and the Pension and Retirement Benefits Fund of Abu Dhabi as a partner in this investment in specific pipelines owned by ADNOC.
"With great success in attracting nearly $ 5 billion in investment, this strategic agreement clearly demonstrates the confidence of the global investor and donor community in the United Arab Emirates and ADNOC as an attractive investment destination. in the long run, and highlights the quality of pipeline badets from ADNC. "
"We are delighted with this partnership with ADNOC, one of the leading companies with proven track record and innovative approaches in the oil and gas sector," said Ang Eing Singh, project manager for the company. investment in the infrastructure of Singapore's Sovereign Wealth Fund. As a long-term global investment fund, we are convinced of the high quality of the vast ADNOC pipeline network, which is a key element of Abu Dhabi's energy system. We look forward to supporting ADNOC in the growth of its pipeline business in the future. "
The agreement is expected to be finalized during the last quarter of 2019 and will be subject to the usual terms and conditions as well as the approval of all applicable regulatory agencies. ADNOC Pipeline Company will lease 18 oil pipelines with a total length of more than 750 km and a total capacity of approximately 13 million barrels per day.
These badets represent a major transportation and distribution infrastructure for Abu Dhabi's energy system. They transfer the bulk of crude oil production from Abu Dhabi's land and sea badets to the UAE's main sales and delivery points to high-value products or export them to the UAE. global energy markets. The pipeline is based on long-term commitments to pump a minimal amount of oil and condensates, supported by stable production of ADNOC and Adenok Marine crude oil, which have partnerships with oil companies. International The average duration of land and maritime concessions of ADNOC is greater than 35 years.

United Arab Emirates

United Arab Emirates