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Gulf oil giants make billions in infrastructure deals

Gulf Arab national oil firms are now well-versed in the art of raising funds while maintaining control of oil and gas assets. This has helped them raise billions for their ambitious diversification plans. Kuwaiti media reported Wednesday that the country could offer investors a stake of its oil pipeline assets by next month. This would mirror similar moves made by other regional countries.

Here are some key facts about such deals.

ADNOC of the UAE

Abu Dhabi National Oil Company, in 2019, created a new company, ADNOC Oil Pipelines. It leased out its 18 pipelines to a consortium that included BlackRock and KKR for a period of 23 years, raising $4 billion. The investors bought a 40% stake, while ADNOC retained 60% of the company and had full control.

ADNOC will form ADNOC Gas Pipelines in 2020 and sell a 49% share to a group consisting of six investors. These include Global Infrastructure Partners, Brookfield Asset Management and Singapore's sovereign fund GIC. The deal raised $10 billion.

Lunate, Abu Dhabi acquired the?40% stake in the oil pipeline from BlackRock and KKR on April 20, 2024. Snam, the indirect owner of the gas pipeline, announced that in January 2024 it sold its stake to Lunate. Lunate, an Abu Dhabi-based alternative investor manager, is part of the business empire headed by Sheikh Tahnoun Bin Zayed Al Nahyan.

KKR bought a minority share in ADNOC Gas Pipelines in October.

SAUDI ARAMCO

Aramco sold its 49% stake in Aramco Oil Pipelines Co. to EIG Global Energy Partners for $12,4 billion over a 25-year period.

In the same year, Aramco Gas Pipelines Co. was formed and a 49% share of it was sold to a group headed by BlackRock and Hassana Investment Co.

Aramco, a consortium led Global Infrastructure Partners and BlackRock, signed a lease-and-leaseback agreement for infrastructure surrounding its Jafurah project in 2025.

Aramco retained the majority of ownership and control over all transactions. Aramco was reported to be looking to sell five gas-fired plants, which could bring in around $4 billion. This is part of an effort to raise funds. According to a report on Wednesday, the oil giant plans to sell within weeks.

Oman's OQ

Oman will sell a 49% share in its gas network unit, OQ Gas Networks via an IPO in 2023. This IPO is expected to raise about $750m.

Fluxys, a Belgian company and the Qatar Investment Authority in Qatar are among the key investors.

OQ retains 51% ownership, and has operational control.

BAHRAIN'S BAPC

In 2024, Bapco Energys sold a minor stake in the Saudi Bahrain oil pipeline BlackRock Infrastructure Fund.

This was Bahrain's very first infrastructure-based deal. The deal's value wasn't disclosed.

Bapco retains majority ownership as well as operational control.

KUWAIT PETROLEUM ?CORPORATION (KPC)

KPC CEO Sheikh Nawaf Nasir al-Sabah said that the company is looking at a sale and leasingback deal to sell and lease back its oil pipelines. The deal would be similar to those used by ADNOC or Aramco. He did not give any figures.

According to a report on Tuesday, the deal could be launched as early as February. It?could raise as much as $7 billion. Sources have confirmed that HSBC, JPMorgan, and Centerview Partners will be advising on the deal. HSBC also offers potential buyers staple finance to support their investment in pipelines.

KPC will retain its majority ownership and operational controls.

Ali AlQadhi, the head of BlackRock's office in Kuwait recently opened. BlackRock has previously refused to comment on the planned KPC deal. It is not clear whether BlackRock will play a role in this.

(source: Reuters)