Lunate acquires a 40% stake in ADNOC Oil Pipelines from BlackRock and KKR

Abu Dhabi, 3 April 2024: Lunate, a global alternative investment manager, announced today that one of its funds has acquired a 40% stake in ADNOC Oil Pipelines LLC (“AOP”), a critical onshore and offshore midstream crude oil pipeline infrastructure asset, from leading institutional investors, BlackRock and KKR.

The acquisition by Lunate’s Long Term Capital Fund, which aims to provide investors with attractive cash yields and long-term capital appreciation, has been executed through the purchase of a 100% stake in a special purpose vehicle jointly held by BlackRock and KKR managed funds, following their investment in AOP in 2019. 

Based in Abu Dhabi, AOP was established in 2019 to lease ownership interests in 22 pipelines from ADNOC for 23 years through a concession agreement. The pipelines include 17 onshore and 5 offshore pipelines across the region, covering 806 kilometres with a total capacity of 18 million barrels per day. AOP plays an important role in global energy markets by connecting energy reserves to export terminals, thereby ensuring energy supplies for key customers globally.

Commenting on the acquisition, Murtaza Hussain, Managing Partner at Lunate, said:

“We are pleased to partner with ADNOC, a leading energy group and national champion that continues to raise the bar for innovation and efficiency in global energy markets.

Lunate’s investment in AOP aligns with our long-term capital strategy to identify and invest in premium infrastructure assets. It also presents an opportunity to invest in a core Abu Dhabi asset and demonstrates our confidence in the UAE economy.”