A consortium of six global investors has signed a $ 20.7 billion deal with the Abu Dhabi National Petroleum Company (ADNOC), the state-owned oil company said Tuesday.
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 gas pipelines. ADNOC will have a majority stake of 51% and will retain ownership of the pipelines. It will also manage operations and remain responsible for capital expenditures.
It is the largest investment in energy infrastructure in the region, and the largest in the world in 2020, according to Abu Dhabi National Oil Company. It is also part of the UAE’s national oil company strategy to attract foreign capital and maximize the value of its assets.
The six companies involved are Global Infrastructure Partners, Brookfield Asset Management, the Singapore Sovereign Fund GIC, the Ontario Teacher Pension Plan Board, NH Investment & Securities and Snam.
“We are excited to have completed this agreement, and once again partner with some of the world’s leading infrastructure and institutional investors,” said Sultan al-Jaber, executive director of the ADNOC Group and UAE minister of state.
“Indeed, it is a great achievement, particularly given the current economic climate and business environment, and it is, in any case, a testament to the position of Abu Dhabi and the United Arab Emirates as a reliable, trustworthy and credible investment destination. “Hadley Gamble told CNBC.
Al-Jaber said the deal would allow ADNOC to responsibly reinvest and finance activities that produce higher returns.
“Importantly, by completing this landmark transaction, we are sending a very strong signal to other potential partners around the world, that ADNOC remains open and indeed very business ready,” he added.
“We will continue to develop and explore additional investment opportunities across our value chain that provide an attractive risk-return profile for high-quality, long-term investors.”
Separately, al-Jaber said there are signs that the oil market is tightening, fueled by OPEC + production cuts and recovery in demand worldwide.
Oil prices have rebounded in recent weeks, with West Texas Intermediate crude crossing $ 40 a barrel for the first time since March. In the Asian afternoon on Tuesday, US crude fell 0.54% to $ 40.51, while Brent crude fell 0.28% to $ 42.96.
“For me, the journey to the next normal may not be a straight line,” he said. “But I think we are on the right track and on the right path to recovery.”