Abu Dhabi National Oil Company (ADNOC) (United Arab Emirates) has completed the sale of a 40% stake in a newly formed entity, ADNOC Oil Pipelines, to BlackRock and KKR. The transaction was announced in February 2019, when the companies signed an initial investment agreement to invest US$4bn into the midstream pipeline assets; ADNOC also sold a 3% stake for US$300m to the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF), retaining 57% in the company.
ADNOC Oil Pipelines will lease ADNOC’s stake in 18 oil pipelines (750 km), transporting stabilised crude oil and condensate across ADNOC’s offshore and onshore upstream concessions, over a 23-year period. ADNOC will pay ADNOC Oil Pipelines for its share of oil volume flowing through the pipelines, backed by minimum volume commitments. The oil company will retain the sovereignty over the pipelines and their management.