Abu Dhabi state-held National Oil Company (ADNOC) has entered into a US$4bn landmark infrastructure partnership with the institutional investors KKR and BlackRock for establishing a new entity called ADNOC Oil Pipelines. The new company will invest in the development of midstream oil pipeline infrastructure and lease ADNOC's interest in 18 pipelines transporting crude oil and condensate across ADNOC's offshore and onshore upstream concessions for a 23-year period. ADNOC will retain a 60% majority interest in the newly formed company, while BlackRock and KKR will collectively own a 40% stake. The transaction is expected to close in the third quarter of 2019 and remains subject to customary closing conditions and all required regulatory approvals.
ADNOC is looking forward to set up a leaner and more integrated business model with expanded capacities in the midstream and downstream sectors and aims to increase its domestic refining, gas and petrochemicals activities. In 2018, the company also announced plans to raise its crude refining capacity by 60% and more than triple its petrochemical production, making its Ruwais facility one of the largest integrated refining and chemicals sites in the world.