KKR, an international investment firm, has announced that it has taken a minority interest in the entity responsible for leasing the gas pipeline assets of the Abu Dhabi National Oil Company (ADNOC). The announcement was made on Wednesday, although the financial specifics of the deal were not revealed.
The investment in ADNOC Gas Pipeline Assets will be made via KKR’s managed accounts, aligning the investment’s structure and duration with long-term capital, as stated by the firm.
This latest move comes on the heels of KKR’s prior investment in ADNOC’s oil pipeline infrastructure back in 2019, which marked a notable moment as it was the first investment by a foreign asset manager in Gulf energy assets.
In collaboration with BlackRock, KKR divested its share of that investment last year, transferring it to Lunate, a company based in Abu Dhabi.
It’s important to note that ADNOC continues to maintain ownership and operational oversight of the pipeline systems.
The UAE, along with Saudi Arabia and Bahrain, has been actively pursuing such partnerships to access foreign institutional capital while ensuring they retain control over vital infrastructure.
A notable example includes Saudi Aramco, which signed an $11 billion leaseback deal in August for its Jafurah gas processing facilities with a consortium led by Global Infrastructure Partners, associated with BlackRock. In a similar vein, last month, Kuwait’s national oil entity expressed intentions to reactivate a project involving the leasing of its crude oil pipelines.
KKR, which oversees more than $90 billion in global infrastructure assets, appointed General David Petraeus as chairman for the Middle East earlier this year, aiming to enhance its business presence and team in the region.
This year, KKR also acquired a stake in Gulf Data Hub, a leading data center company in Dubai, with both parties committing over $5 billion to expand data center capabilities.