ZCZC
BCN-12
UAE-OIL-ENERGY-ADNOC-BLACKROCK-KKR
UAE oil firm signs $4 bn deal with BlackRock, KKR
ABU DHABI, Feb 24, 2019 (BSS/AFP) – State-owned UAE energy giant Abu Dhabi
National Oil Co. on Sunday signed a $4 billion deal with 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 percent 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 percent 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 $132 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.
BlackRock, the world’s largest asset manager, has some $6.4 trillion under
management while KKR manages a fund worth $150 billion. Both are based in New
York.
Last month, ADNOC signed partnership deals worth $5.8 billion giving
Italy’s Eni a 20-percent stake in ADNOC Refining and Austria’s OMV a 15-
percent share in the refining arm.
Abu Dhabi, one of seven states that make up the United Arab Emirates, holds
more than 90 percent of the federation’s 98 billion barrels of crude oil
reserves.
BSS/AFP/SR/1735 HRS