Abu Dhabi National Oil Co (ADNOC) is considering moving a 51% stake in its $21-billion natural gas pipeline network into a special-purpose vehicle, Bloomberg reported citing people familiar with the matter. According to them, the state-owned company will then offer indirect interest in the asset to local investors by selling about 20% of the vehicle.
In June, ADNOC sold a stake worth more than $10 billion in the pipelines to six international investors as part of Abu Dhabi’s push to generate additional sources of funding by opening its energy sector. The cash from the sale will bring additional funding for the emirate at a time when crude oil prices were low. This also coincides with ADNOC restructuring drive, which saw the company selling assets and adding more foreign partners.
Last year, KKR & Co., BlackRock Inc., and Singapore’s GIC agreed to invest in ADNOC’s pipelines. The company also brought international partners to invest in its refining and oil-field servicing businesses.
