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29 January 2020

ADNOC’s $15 billion gas pipeline attracts BlackRock, GIP interest

The state-owned energy giant is considering selling as much as 49 per cent of the business through a lease structure

Last year, KKR and BlackRock agreed to invest $4 billion in Abu Dhabi’s oil pipelines/Bloomberg

by Kudakwashe Muzoriwa

BlackRock, Global Infrastructure Partners and KKR & Co. are among suitors considering bidding for a stake in natural gas pipelines being sold by Abu Dhabi National Oil Company (ADNOC).

Australia’s IFM Investors and Ontario Teachers’ Pension Plan are also weighing offers for a stake in ADNOC’s gas pipeline unit. A deal is expected to value the state-owned energy giant, business at as much as $15 billion including debt.

The oil giant expects to receive first-round bids in mid-February 2019. ADNOC is considering selling as much as 49 per cent of the business through a lease structure.

Abu Dhabi, the capital of the UAE, is among the Arabian Gulf oil producers that are opening up their operations to outside investment to attract fresh capital and diversify their economies. ADNOC has raised billions of dollars by bringing in partners for businesses including its refining unit and drilling business.

No final decisions have been made, and there is no certainty the companies will proceed with firm offers for a stake in the ADNOC gas pipelines.

Last year, KKR and BlackRock agreed to invest $4 billion in Abu Dhabi’s oil pipelines, securing two decades of guaranteed returns. The deal was the first investment by foreign asset managers in the infrastructure of a Middle Eastern government-owned oil producer. Singapore sovereign wealth fund GIC Pte also invested in the business later.

RELATED STORIES: Ontario Teachers’ Pension Plan ADNOC KR & Co. Global Infrastructure Partners BlackRock IFM Investors





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