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ADNOC (UAE) sells 6% stake in oil pipeline company to Singapore sovereign fund

Singapore’s sovereign wealth fund (GIC) has decided to acquire a 6% stake in ADNOC Oil Pipelines, for US$600m. ADNOC Oil Pipelines is an entity recently formed by Abu Dhabi National Oil Company (ADNOC) (United Arab Emirates) to transport crude oil and condensate from ADNOC's onshore and offshore fields to its export and refining facilities. ADNOC will retain sovereignty and management of the pipelines, while ADNOC Oil Pipelines will lease ADNOC’s stake in 18 oil pipelines (750 km) 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.

Earlier in 2019, ADNOC sold a 40% stake in ADNOC Oil Pipelines to BlackRock and KKR for US$4bn and a 3% stake to the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) for US$300m. With the sale of a 6% stake to GIC, ADNOC will retain 51% in the company.