Abu Dhabi global alternative investment manager Lunate has acquired a 40% stake in Abu Dhabi National Oil Company’s oil pipeline infrastructure assets, ADNOC Oil Pipelines (AOP) from BlackRock and KKR.
The acquisition aims to provide investors with attractive cash yields and long-term capital appreciation. The deal has been executed through the purchase of a 100% stake in a special-purpose vehicle jointly held by BlackRock and KKR-managed funds.
AOP was established in 2019 to lease ownership interests in 22 pipelines from ADNOC for 23 years through a concession agreement. Its pipelines include 17 onshore and 5 offshore pipelines across the region, covering 806 kilometres with a total capacity of 18 million barrels per day.
“We are pleased to partner with ADNOC, a leading energy group and national champion that continues to raise the bar for innovation and efficiency in global energy markets,” said Murtaza Hussain, Managing Partner at Lunate.
“Lunate’s investment in AOP aligns with our long-term capital strategy to identify and invest in premium infrastructure assets. It also presents an opportunity to invest in a core Abu Dhabi asset and demonstrates our confidence in the UAE economy.”
BlackRock and KKR bought the stake for $4 billion in 2019, becoming the first foreign investors to acquire infrastructure assets of a national oil company in the Gulf. Neither company has commented on the statement.
The terms and value of the deal were not disclosed.
Lunate manages $105 billion of assets and invests in private markets including buyouts, growth equity, early and late-stage venture capital, private credit, real assets, and public equities and public credit.
Last month, Lunate announced the launch of the UAE and GCC’s first-ever UAE bond Exchange Traded Fund (ETF) in partnership with JPMorgan.
