Investment Powerhouse Lunate Secures 40% Stake in Adnoc Oil Pipelines from BlackRock and KKR

Lunate, a prominent investment firm headquartered in Abu Dhabi, has secured a substantial 40% stake in Adnoc Oil Pipelines (AOP) from BlackRock and KKR, two major players in the global investment landscape.

This significant acquisition, facilitated by one of Lunate's investment funds, involved purchasing a full 100% stake in a special purpose vehicle (SPV) jointly managed by the aforementioned institutional investors. Murtaza Hussain, managing partner at Lunate, expressed enthusiasm about the collaboration with Adnoc, emphasizing the company's track record of driving innovation and efficiency in the global energy sector.

Hussain highlighted that Lunate's investment in AOP is part of its overarching strategy to strategically identify and invest in high-quality infrastructure assets over the long term.

Adnoc Oil Pipelines, established in 2019, operates under a concession agreement, leasing ownership interests in 22 pipelines from Adnoc for a period of 23 years. These pipelines, comprising 17 onshore and five offshore routes, span approximately 806km and boast a collective capacity of 18 million barrels per day.

This stake acquisition marks a significant development nearly five years after BlackRock and KKR, in a pioneering move, injected $4 billion upfront through an SPV to invest in Adnoc's pipeline assets. This deal represented the first instance of international financial institutions investing in the infrastructure of a state-owned energy company within the Gulf region.

Source: John Benny / The National