UAE oil major signs $ 20 billion gas deal

UAE's ADNOC today announced a $ 20.7 billion deal with six international companies to acquire a minority stake in Adnoc Gas Pipeline Assets.

Under the terms of the deal, Global Infrastructure Partners, Brookfield Asset Management, Sovereign Wealth Fund of Singapore, Ontario Teachers' Pension Plan Board, Sanam, and NH Investment & Securities ADNN will receive a 49 per cent interest in gas pipeline assets, UAE's National Oil And the new subsidiary of the gas company.

The acquisition would give buyers the right to lease 38 pipelines, but ADNOC would retain responsibility for the ownership of assets and capital expenditure plans. The lease rights will have an impact for 20 years.

The Emirates company said in a press release that, new technologies in transaction structure allows global investors by foreign investment to increase the capital and to enlarge company as well as to maintain full operational control over the properties involved as the part of the investment.

Reports surfaced of ADNOC's plan to sell a stake in the infrastructure of the gas pipeline last year, with unnamed sources stating that the company was eyeing earnings of up to $ 5 billion.

The sale process, which could be structured as a long-term lease rather than a direct stake sale, is expected to attract private equity firms and infrastructure funds.

This dear as part of efforts to extend midstream and downstream systems of ADNOC's by inviting foreign investments into this business. The state's oil company has set its sights on downstream deals outside the Middle East region, particularly in Asia, to lock in future demand for its oil.

Earlier in 2019, the Emirati state head closed a $ 4.9 billion minority stake for its oil pipeline network. Participants in that deal included Singapore's Sovereign Wealth Fund again, Blackrock, KKR, and the Abu Dhabi Retirement Pension and Benefits Fund.

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