Singapore GIC invests in Abu Dhabi oil pipeline infrastructure

Out-Law News | 14 Aug 2019 | 8:44 am | 1 min. read

Singapore's sovereign wealth fund GIC has entered into a $4.9bn pipeline infrastructure investment agreement with the Abu Dhabi national oil company (ADNOC). 

Following BlackRock, KKR, the Abu Dhabi Retirement Pension, Benefits Fund and ADRPBF that signed a $4.3bn investment agreement earlier this year, GIC will invest $600 million in select ADNOC crude pipeline infrastructure, which leads to total investments aggregating $4.9bn.

According to the statement issued by ADNOC, under this follow-up investment agreement, GIC will acquire a 6% stake in the recently formed company ADNOC Oil Pipelines, with BlackRock and KKR together holding 40%, ADRPBF 3% and ADNOC the remaining 51%. The statement said that the transaction is expected to close before the end of 2019, subject to customary closing conditions and all regulatory approvals.

Commenting on the transaction, group director of finance and investment at ADNOC Ahmed Jasim Al Zaabi said: "With nearly $5 billion of total investment, the overall agreement is testimony to the global investment community’s positive view on the attractiveness of both the UAE’s long-term potential, as well as the quality of ADNOC’s substantial infrastructure asset base."

GIC chief investment officer for infrastructure Ang Eng Seng said: "We are pleased to establish our partnership with ADNOC, a leading operator with a strong track record and an innovative approach. As a global long-term investor, we are confident in the quality of ADNOC’s substantial oil pipeline network, which is a core element of Abu Dhabi’s energy ecosystem. "

ADNOC is a major diversified group of energy and petrochemical companies. GIC is a global long-term investor with over $100 billion in assets in over 40 countries worldwide.