Abu Dhabi Pension Fund and ADQ’s US$2.1 Billion Investment In Abu Dhabi National Oil Company

Ashurst has advised Abu Dhabi National Oil Company on the deal.

ADNOC received a US$2.1 billion investment by the Abu Dhabi Pension Fund (‘ADPF’) and ADQ, one of the region’s largest holding companies, into select ADNOC gas pipeline infrastructure assets. This transaction follows the US$10.1 billion investment in the same assets in July this year by a consortium of global investors comprising Global Infrastructure Partners, Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Board, NH Investment & Securities and Snam (‘the Consortium’), on which Ashurst also advised ADNOC.

This follow-on transaction will see ADNOC divest 20% of ADNOC Gas Pipelines HoldCo LLC, the wholly owned ADNOC subsidiary that holds a 51% stake in ADNOC Gas Pipeline Assets LLC (‘ADNOC Gas Pipelines’). ADNOC Gas Pipelines is a recently formed ADNOC subsidiary with lease rights to 38 gas pipelines covering a total of 982 kilometres, in which the Consortium holds a collective 49% stake.

The investment will result in proceeds of US$2.1 billion to ADNOC, and allows ADPF and ADQ to join leading global institutional investors in accessing ADNOC’s high quality energy infrastructure assets that generate stable cashflows and have an attractive risk profile.

The Ashurst team was led by partner Stuart James (Picture), assisted by senior associate Johnson Lo and associate Shahd Amin, together with specialist partners Matthew Wood and Neil Cuninghame on financing and competition aspects respectively.

Involved fees earner: Shahd Amin – Ashurst; Neil Cuninghame – Ashurst; Stuart James – Ashurst; Johnson Lo – Ashurst; Matthew Wood – Ashurst;

Law Firms: Ashurst;

Clients: Abu Dhabi National Oil Company;

Author: Michael Patrini