Abu Dhabi pension fund invests in ADNOC pipeline infrastructure

The Abu Dhabi National Oil Company (ADNOC) announced that it has entered into a follow-on pipeline infrastructure investment agreement with the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF). ADRPBF will invest AED 1.1 billion (USD 300 million), following BlackRock and KKR who in February of this year signed the initial investment agreement to invest AED 14.7 billion (USD 4 billion) into the midstream pipeline assets.
To mark the occasion, a signing ceremony was held today at ADNOC Headquarters with His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO and His Excellency Riyad Al Mubarak, Abu Dhabi Retirement Pensions and Benefits Fund Chairman.
This follow-on investment agreement will see ADRPBF acquire a 3% stake in a newly formed entity, ADNOC Oil Pipelines – Sole Proprietorship LLC (‘ADNOC Oil Pipelines’), with BlackRock and KKR together holding 40% and ADNOC the remaining 57%. ADNOC Oil Pipelines leases ADNOC’s interest in 18 pipelines, transporting stabilized crude oil and condensate across ADNOC’s offshore and onshore upstream concessions, for a 23-year period. The entity receives a tariff payable by ADNOC, for its share of volume of crude and condensate that flows through the pipelines, backed by minimum volume commitments. Sovereignty over the pipelines and management of pipeline operations remain with ADNOC.