The Abu Dhabi National Oil Company (ADNOC) signed a $4 billion pipeline infrastructure investment agreement with BlackRock and KKR & Co., two of the world’s top institutional investors, the UAE's oil giant said in a statement on Sunday.
ADNOC will lease interest in 18 pipelines, totaling 750 kilometers and having a capacity of 13 million barrels per day, to ADNOC Oil Pipelines, a special purpose vehicle, for 23 years.
The new entity - owned 40 percent by BlackRock and KKR, and remaining 60 percent by ADNOC, will receive a tariff payable by ADNOC, for its share of volume of crude and condensate that flows through the pipelines, the statement added.
BlackRock will be investing through its third Global Energy & Power Infrastructure Fund, while KKR investment will be from its $7.4 billion Global Infrastructure Investors Fund.
The transaction is expected to close in Q3 2019, subject to customary closing conditions and all regulatory approvals, the statement said.
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