Abu Dhabi`s Lunate acquires 40 percent stake in (AOP) from BlackRock, KKR

(MENAFN) In a significant move within the energy investment landscape, Abu Dhabi-based global alternative investment management company Lunate has finalized the acquisition of a 40 percent stake in Adnoc Oil Pipelines (AOP) from BlackRock and KKR. This strategic transaction, executed through one of Lunate's funds, involved the purchase of a 100% stake in a special purpose vehicle (SPV) jointly held by the two institutional investors' managed funds.

Murtaza Hussain, Managing Partner at Lunate, expressed enthusiasm about the partnership with Adnoc, highlighting the company's reputation for innovation and efficiency in global energy markets. He emphasized that Lunate's investment in AOP aligns with its long-term capital strategy, focusing on identifying and investing in premium infrastructure assets.

Established in 2019, Adnoc Oil Pipelines operates under a concession agreement, leasing ownership interests in 22 pipelines from Adnoc for a duration of 23 years. These pipelines, comprising 17 onshore and five offshore pipelines, span across the region, covering a total distance of 806km and boasting a combined capacity of 18 million barrels per day.

The stake acquisition marks a significant milestone, occurring nearly five years after BlackRock and KKR initially invested USD4 billion through an SPV to gain access to Adnoc's pipeline assets. Notably, this deal marked the first instance of international financial institutions investing in the infrastructure of a state-owned energy company in the Gulf region, signaling a paradigm shift in investment dynamics within the energy sector.

As Lunate solidifies its position as a key player in global infrastructure investment, the acquisition of a substantial stake in Adnoc's pipeline assets underscores the company's strategic vision and commitment to driving value for its stakeholders. With the energy landscape evolving rapidly, partnerships like these are poised to shape the future of energy infrastructure development and investment strategies, paving the way for sustainable growth and innovation in the sector.


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