Abu Dhabi’s Lunate buys stake in Adnoc’s pipelines

Adnoc

• US companies sell 40% stake
• BlackRock and KKR paid $4bn
• 22 pipelines carry 18m bpd

US companies Blackrock and KKR have sold their 40 percent stake in Abu Dhabi National Oil Company’s (Adnoc) oil pipeline infrastructure assets to Abu Dhabi alternative investor Lunate.

Lunate is backed by Abu Dhabi sovereign wealth fund ADQ and has $105 billion of assets under management. The acquisition was made by one of Lunate’s funds.

The terms and value of the deal were not disclosed. BlackRock and KKR did not comment.

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BlackRock and KKR bought the stake for $4 billion in 2019 in a landmark deal, becoming the first foreign investors to acquire infrastructure assets of a national oil company in the Gulf.

Adnoc Oil Pipelines was set up in 2019 to lease Adnoc’s ownership interests in 22 pipelines, transporting crude oil and condensates across Adnoc’s upstream concessions for a 23-year period.

The pipelines comprise 17 onshore and five offshore pipelines across the region, covering 806 kilometers with a total capacity of 18 million barrels per day.

• Adnoc Gas to invest $13bn in domestic and international growth
• Adnoc Drilling and Alpha Dhabi to surpass 3-year $1.5bn target
• Abu Dhabi firm launches $50bn asset manager

Lunate is part of a business empire overseen by Sheikh Tahnoun bin Zayed Al Nahyan, the United Arab Emirates’ national security adviser and brother of UAE President Sheikh Mohammed bin Zayed Al Nahyan.

Sheik Tahnoun also chairs the Abu Dhabi Investment Authority, estimated by wealth fund tracker Global SWF to manage $968 billion in assets, and ADQ, Abu Dhabi’s third-largest wealth fund.

The company invests across private markets. These include buyouts, growth equity, early and late-stage venture capital, private credit, real assets, and public equities and public credit, according to its website.