ADNOC enters $20bn energy deal with six global firms

ADNOC enters $20bn energy deal with six global firms

/ Energy & Power / Tuesday, 23 June 2020 08:19

A consortium of six global investors has entered into a $20.7 billion agreement with Abu Dhabi National Oil Company (ADNOC), the state-owned oil company has announced. 

As part of the agreement, the group will invest $10.1 billion to acquire a 49% stake in a newly-formed subsidiary, ADNOC Gas Pipeline Assets, with lease rights to 38 pipelines. ADNOC will hold the majority stake of 51% and will retain ownership of the pipelines. It will also manage operations and remain responsible for capital expenditure.

It is the single-largest energy infrastructure investment in the region and the largest in the world in 2020, according to ADNOC. It is also part of the UAE national oil company’s strategy to attract foreign capital and maximize the value of its assets.

This landmark transaction will unlock significant capital to reinvest in ADNOC’s strategic growth, and reinforce the UAE’s reputation as an investment destination of choice.

It will also create a further benchmark for large-scale energy infrastructure investment into the UAE and wider region from leading global institutional investors. 

The six companies involved are Global Infrastructure Partners, Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Board, NH Investment & Securities and Snam.

"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 ADNOC group chief executive and Minister of State, Dr Sultan Al Jaber.

The investment reflects "continued strong interest in ADNOC’s low-risk, income-generating assets," setting another benchmark for large-scale energy infrastructure investments in the UAE and the wider region, Dr Al Jaber added.

Latest Issue

Please publish modules in offcanvas position.