Abu Dhabi National Oil Company (ADNOC) recently confirmed that it has entered into a $4 billion midstream pipeline infrastructure deal with investing giants, BlackRock (BLK) and KKR (KKR), making the investment first of its kind in the Middle East.
ADNOC has been long contemplating to diversify revenue sources and bring private capital and more commercial management into the company. The said partnership is a landmark move in midstream pipeline infrastructure development for ADNOC.
The new entity will be called ADNOC Oil Pipelines that will lease the oil company’s interest in 18 pipelines, transporting crude oil and condensates across its upstream concessions for a 23-year period.
60% of the stake will be held by ADNOC, with the remaining 40% to be collectively held by a consortium of funds managed by two U.S. firms.
In the last couple of months, ADNOC has also signed agreements with other international gas and oil companies like Italy’s ENI and Austrian OMV in order to step up its import of capital.