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ADNOC
Abu Dhabi Pension Fund to Partner ADNOC Trading Office. with ADNOC in new Investment Partnership
Partnership allows ADNOC to unlock further value from non-oil and gas strategic infrastructure
Abu Dhabi Pension Fund to gain further financial exposure to high-quality ADNOC assets with superior, long-term risk-adjusted return and income profile
The Abu Dhabi National Oil Company (ADNOC) recently announced that it has signed and completed a strategic real estate investment partnership with Abu Dhabi Pension Fund (ADPF). The partnership will enable ADNOC redeploy into its core business and strategic growth projects.
The transaction is ADPF’s third successive energy infrastructure and real estate asset partnership with ADNOC and marks ADPF’s largest single transaction with ADNOC to date.
The ADPF partnership follows the announcement by ADNOC in September 2020 that it had entered into a long-term strategic investment with accounts and entities owned and / or advised by Apollo Global Management and its subsidiaries, one of the world’s largest alternative investment managers, and a group of institutional investors, for an underlying real estate portfolio valued at US$ 5.5bn.
ADPF stake
Under the terms of the agreement, ADPF will acquire a 31% holding in Abu Dhabi Energy Real Estate Company, the company created to hold ADNOC’s 51% stake in Abu Dhabi Property Leasing Holding Company, for a consideration of US$ 900mn.
“This innovative partnership reinforces ADNOC’s ability to unlock and drive incremental value from our unique energy infrastructure and real estate asset base, while simultaneously creating attractive opportunities for the long-term financial well-being of the UAE,” affirmed Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO.
For ADPF, this new investment presents another opportunity to access high-quality lease assets with superior, risk-adjusted returns and income profiles, and lock in long-term, recurring and stable cash-flows. The portfolio of assets is expected to achieve strong future occupancy and rental rates.
“This agreement aligns with the Fund’s investment strategy, aimed at investing in high-quality diversified portfolios to
achieve the maximum possible value,” remarked Jassim Buatabh, Chairman of the Board of Directors, Abu Dhabi Pension Fund.
Investment transactions
Since announcing the expansion of its partnership and investment model and its assets and capital optimization in 2017, ADNOC has entered the debt capital markets for the first time, issuing a US$ 3bn bond backed by the Abu Dhabi Crude Oil Pipeline; partially floated ADNOC Distribution, the first-ever IPO of an ADNOC Group company; and entered into several strategic investment partnerships in its drilling, refining, fertilizer and trading businesses, amongst others.
ADNOC has also closed landmark investment partnerships with leading global institutional investors and operators in its oil and gas pipeline infrastructure.
New Directorate key to driving downstream expansion, post-Covid growth and In-Country Value
Abu Dhabi National Oil Company (ADNOC) has created a new Downstream Industry, Marketing & Trading Directorate, effective January 17, 2021, that integrates the company’s existing Downstream & Industry Directorate and Marketing, Supply & Trading Directorate.
Khaled Salmeen, who previously held the role of Executive Director Marketing, Supply and Trading, will lead the new Directorate.
This strategic organizational change, the latest in ADNOC’s transformation journey, will enable greater value chain optimization across ADNOC’s Downstream and Trading operations, improving performance, profitability and efficiency.
The new Downstream Industry, Marketing & Trading Directorate introduces a more integrated operating model that will help ADNOC provide a better service to its customers, while expanding it’s downstream operations, cataylizing the UAE’s industrial and post-Covid economic growth, and further advancing its focus on In-Country Value.
As a central and integrated unit, the new Directorate will deliver a more aligned and coordinated effort between customer and market demand and product supply. It will enable a more agile response to market dynamics and customer needs, while supporting ADNOC’s goal to drive synergies and maximize value from every barrel and molecule that the company produces, refines, ships and sells.
Smart growth strategy
As ADNOC delivers on its 2030 smart growth strategy and its ambitious Downstream expansion plans, the new Directorate will be a critical enabler of the company’s goal to responsibly deliver the energy and energy products that the world needs, particularly in its core Asian market, where demand for refined and petrochemical products are set to grow over the next ten years.
The Directorate will also drive ADNOC’s activities to catalyze the UAE’s industrial development and economic diversification, overseeing the development of TA’ZIZ and the Ruwais Derivatives Park. This will strengthen the UAE’s position as a globally competitive chemicals hub and destination for foreign direct investment.
The Directorate will also lead ADNOC activities to capitalize on the emerging global market for hydrogen, building on the company’s existing position as a major producer with existing infrastructure, partnerships and customer relationships. The new Directorate will govern ADNOC’s interests across its refining, gas processing, petrochemicals, product sales, shipping and integrated logistics and trading portfolio.
