ABU DHABI (AFP) -State-owned UAE energy giant Abu Dhabi National Oil Co (ADNOC) yesterday signed a USD4 billion deal with United States (US)-based investors BlackRock and KKR granting them a minority stake in its pipeline arm.
The agreement gives the two investors a joint stake of 40 per cent in ADNOC Oil Pipeline, a newly established firm that owns all of the 18 pipelines that carry Abu Dhabi crude oil and condensates, a statement said.
ADNOC will keep the remaining 60 per cent and also have sovereignty over the pipelines and management of operations, the company said.
One of the largest national oil conglomerates, ADNOC has signed a raft of agreements with major international oil firms to attract funding and expertise in a bid to boost production of crude oil and natural gas as well as refining capacity.
Last year, ADNOC granted concession rights in existing and new oilfields and earmarked some USD132 billion over the next five years to boost crude output capacity to four million barrels per day in 2020 and to five million bpd a decade later.
ADNOC Chief Executive Sultan al-Jaber said the deal demonstrates the trust of the global investment community in the company’s approach.
“We are creating a range of attractive opportunities for global and regional institutional investors to partner and invest alongside ADNOC to enhance value from our sizeable infrastructure base,” he said.