The Emirates News Agency quoted ADNOC ADNOC today announcing the signing of a strategic partnership agreement in the field of infrastructure for transporting and distributing pipelines with KKR and Black Rock, which are considered among the leading investment institutions in the world.

According to the agreement, the newly created ADNOC Oil Pipelines as a single limited liability company will lease ADNOC's stake in 18 pipelines transporting crude oil and condensate from ADNOC's offshore and offshore concessions for a period of 23 years.

In turn, ADNOC Oil Pipes LLC will obtain a tariff that ADNOC will pay for its share of the quantities of crude oil and condensate that is pumped through the pipes, with a commitment to set a minimum of these quantities.

The funds managed by Black Rock and KKR will establish a coalition through which you will get 40% in ADNOC Oil Pipelines LLC, while ADNOC / Al-major / retains the remaining majority stake which amounts to 60%, as well as the right to control and manage pipeline operations, and this agreement will generate returns for ADNOC estimated at 14.7 billion dirhams paid in advance.

ADNOC's 60% stake in ADNOC Oil Pipelines Company will be owned by ADNOC through ADNOC Infrastructure LLC, a subsidiary and 100% owned by ADNOC. ADNOC Infrastructure LLC also owns ADNOC 100% stake in Abu Dhabi Crude Oil Company LLC, ADCOP.

ADNOC Infrastructure LLC is expected to add, in due course, an additional specific set of infrastructure assets of ADNOC to be a new and innovative investment platform in this field.

This agreement comes after the company launched a number of value creation initiatives recently, including the start of ADNOC dealings with financial markets, the issuance of Abu Dhabi pipeline bonds for the crude oil company (ADCOP), and the IPO shares for ADNOC Distribution, And the strategic business partnership between ADNOC Drilling and BakerHouse, and between ADNOC Refining, ENI and OMV.

It is worth noting that, Fitch has granted ADNOC an independent credit rating of AA +, and a rating of AA for the ability to meet its long-term obligations, with a stable outlook, and these two ratings are currently the highest credit ratings granted by Fitch For an oil and gas company globally.