Logo of Phnom Penh Post newspaper Phnom Penh Post - UAE oil firm inks $4B deal with BlackRock and KKR

UAE oil firm inks $4B deal with BlackRock and KKR

Content image - Phnom Penh Post
UAE Minister of State and ADNOC Group CEO Sultan Ahmed al-Jaber speaks during the Abu Dhabi International Petroleum Exhibion and Conference in 2017. KARIM SAHIB/AFP

UAE oil firm inks $4B deal with BlackRock and KKR

STATE-OWNED UAE energy giant Abu Dhabi National Oil Co on Sunday signed a $4 billion deal with US-based investors BlackRock and KKR granting them a minority stake in its pipeline arm.

The agreement gives the two investors a joint stake of 40 per cent in ADNOC Oil Pipeline, a newly established firm that owns all of the 18 pipelines that carry Abu Dhabi crude oil and condensates, a statement said.

ADNOC will keep the remaining 60 per cent and also have sovereignty over the pipelines and management of operations, the company said.

One of the largest national oil conglomerates, ADNOC has signed a raft of agreements with major international oil firms to attract funding and expertise in a bid to boost production of crude oil and natural gas as well as refining capacity.

Last year, ADNOC granted concession rights in existing and new oilfields and earmarked some $132 billion over the next five years to boost crude output capacity to four million barrels per day (bpd) next year and to five million bpd a decade later.

ADNOC CEO Sultan Ahmed al-Jaber said the deal demonstrates the trust of the global investment community in the company’s approach.

“We are creating a range of attractive opportunities for global and regional institutional investors to partner and invest alongside ADNOC to enhance value from our sizeable infrastructure base,” he said.

BlackRock, the world’s largest asset manager, has some $6.4 trillion under management while KKR manages a fund worth $150 billion. Both are based in New York.

Last month, ADNOC signed partnership deals worth $5.8 billion giving Italy’s Eni a 20 per cent stake in ADNOC Refining and Austria’s OMV a 15 per cent share in the refining arm.

Abu Dhabi, one of seven states that make up the UAE, holds more than 90 per cent of the federation’s 98 billion barrels of crude oil reserves.

MOST VIEWED

  • Investors’ $14.4M projects approved

    New investments from local and foreign sources continue to pour into Cambodia despite the Covid-19 pandemic remaining a lingering threat to regional and global economies. This comes as the Kingdom’s gross domestic product (GDP) is expected to contract between one and 2.9 per cent this

  • NagaWorld casinos set to reopen, schools to follow

    NAGACORP Ltd has requested that it be allowed to reopen its NagaWorld integrated resorts in Phnom Penh after the government recently approved casinos to operate again, provided they follow Covid-19 prevention measures set by the Ministry of Health. Mey Vann, the director-general of the Ministry

  • Rubber exports stretch 17%

    Cambodia exported 97,175 tonnes of natural rubber in the first five months of this year, surging 17 per cent compared to the same period last year as the Covid-19 pandemic stretches on, Ministry of Agriculture, Forestry and Fisheries official Khuong Phalla told The Post on Thursday. Phalla,

  • ASEM supports Kingdom’s proposal to postpone meeting amid Covid

    The 13th Asia-Europe Meeting (ASEM13) scheduled to be held in Cambodia in November has been postponed until mid-2021 due to the Covid-19 pandemic, a Ministry of Foreign Affairs and International Cooperation press statement released on Saturday said. The decision was made during a two-day meeting

  • Coffee maker roasted for producing fake product

    The Ministry of Interior’s Counter Counterfeit Committee will send a suspect to court on Monday after she allegedly roasted coffee mixed with soybeans and other ingredients, creating a product which could pose a high risk to consumers’ health. On the afternoon of July 2, the

  • Cash handout programme 80% complete

    Minister of Social Affairs, Veterans and Youth Rehabilitation Vong Soth confirmed on Thursday that the implementation of the Cash Transfer Programme For Poor and Vulnerable Households During Covid-19 had been implemented for more than 80% of the over 560,000 families. The programme was introduced one week ago.

  • Cambodia armed with money laundering laws

    Money laundering will now carry a penalty of up to five years in prison while those convicted of financing terrorists will be jailed for up to 20 years, according to new laws promulgated by King Norodom Sihamoni and seen by The Post on Thursday. Comprising nine

  • Where is Cambodia’s exit strategy that can save the economy?

    With the prospect of being slammed by a double whammy, the government is working on an economic recovery plan to deliver it from Covid-19 and the EU’s partial withdrawal of the Everything But Arms scheme in the next two to three years Cambodia is

  • Schools to be reopened in ‘three stages’

    With guidance from Prime Minister Hun Sen, the Ministry of Education, Youth and Sport, is in the process of reopening schools in three stages. But no timeline has been set, ministry spokesperson Ros Soveacha said on Thursday. Soveacha said the first stage will be to

  • Kingdom, UN discuss rights

    A year after Cambodia received 198 recommendations from UN member countries, the UN Office of the High Commissioner for Human Rights (OHCHR-Cambodia) met with the Cambodia Human Rights Committee (CHRC) to discuss following-up on the Kingdom’s third cycle of the Universal Periodic Review (UPR) and