Abu Dhabi National Oil Company (ADNOC) has entered into a $20.7 billion agreement with a consortium of six global investors.
As part of the deal, the group will invest $10.1 billion to acquire a 49 per cent stake in a newly-formed subsidiary, ADNOC Gas Pipeline Assets.
The group, including Global Infrastructure Partners, Brookfield Asset Management, Singapore wealth fund GIC, Canada's Ontario Teachers’ Pension Plan Board, NH Investment & Securities and Snam, will have lease rights to 38 pipelines.
ADNOC will hold the majority stake of 51 per cent and will retain ownership of the pipelines and full operational controls.
It will lease its ownership interest in the assets to ADNOC Gas Pipelines for 20 years in return for a volume-based tariff subject to a floor and a cap. The transaction will result in upfront proceeds of over $10 billion to ADNOC.
"This milestone transaction demonstrates the trust and confidence placed in ADNOC by the global investment community and unlocks significant value from our pipeline portfolio, following last year’s groundbreaking oil pipeline infrastructure investment partnership," said Dr. Sultan bin Ahmad Sultan Al Jaber, Minister of State and ADNOC Group CEO, said,
"Today’s landmark investment signals continued strong interest in ADNOC’s low-risk, income-generating assets, and sets another benchmark for large-scale energy infrastructure investments in the UAE and the wider region. It solidifies ADNOC’s position as an attractive partner and reinforces the UAE’s track record as the region’s go-to foreign direct investment destination, even during the current unprecedented circumstances."