Singapore sovereign wealth fund GIC has joined international investors BlackRock and KKR in an oil pipeline partnership with Abu Dhabi’s National Oil Co. (Adnoc), bringing the total investment in the project to nearly $5 billion, Kallanish Energy reports.
The move, which will see GIC invest $600 million in select Adnoc crude pipeline infrastructure, follows a deal signed in February between the three now-partners.
The addition of GIC, which follows a further $300 million investment in the project by Abu Dhabi’s Retirement Pensions and Benefits Fund (Adrpbf) in April, brings the combined lease-based investment by the investors to $4.9 billion.
The follow-on investment agreement will give GIC a 6% stake in the entity Adnoc Oil Pipelines LLC. BlackRock and KKR together hold 40%, with Adrpbf holding 3% and Adnoc the remaining 51%, according to an Adnoc press release.
Adnoc retains sovereignty over and management of the pipeline, with the transaction expected to close by the end of this year.
The initial deal with KKR and BlackRock, which represented a key partnership in midstream pipeline infrastructure development for Adnoc, was the latest step in the company’s drive to diversify revenue sources and bring private capital and more commercial management into the company.
Adnoc Oil Pipelines will “lease Adnoc’s interest in 18 pipelines, transporting stabilized crude oil and condensate across Adnoc’s offshore and onshore upstream concessions,” for 23 years, the company said in February.
GIC’s chief investment officer for Infrastructure, Ang Eng Seng, described Adnoc as “a leading operator with a strong track record and an innovative approach.”
This post appeared first on Kallanish Energy News.