GIC to invest $600m in ADNOC's crude pipelines

It will take a 6% stake in ADNOC Oil Properties along with BlackRock and KKR.

Sovereign wealth fund GIC has agreed to invest $600m in the Abu Dhabi National Oil Company’s (ADNOC) select crude pipeline infrastructure, an announcement revealed. GIC’s investment follows the $4.3b total investment from BlackRock, KKR and the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF).

This takes the combined lease-based investment of GIC, ADRPBF, KKR and BlackRock to $4.9b.

This follow-on investment agreement will see GIC acquire a 6% stake in a newly formed entity, ADNOC Oil Pipelines LLC (ADNOC Oil Pipelines), with BlackRock and KKR together holding 40%, ADRPBF 3% and ADNOC the remaining 51%. Sovereignty over the pipelines and management of pipeline operations remain with ADNOC.

The transaction is expected to close before the end of 2019, subject to customary closing conditions and regulatory approvals.