Lunate Acquires 40% Stake in ADNOC Oil Pipelines 

Lunate, a prominent global alternative investment manager, has acquired a 40% stake in ADNOC Oil Pipelines (“AOP”) from institutional investors BlackRock and KKR. This acquisition signifies a major investment for Lunate in energy infrastructure and further strengthens its real assets portfolio. 

AOP, based in Abu Dhabi, operates a vital midstream crude oil pipeline infrastructure comprising 22 pipelines covering 806 kilometres. These pipelines are essential for supporting the region’s energy ecosystem, ensuring the efficient transportation of oil reserves to export terminals. 

The transaction, executed by Lunate’s Long Term Capital Fund, involves the purchase of a 100% stake in a special purpose vehicle jointly held by BlackRock and KKR-managed funds, following their initial investment in AOP in 2019. This move underscores Lunate’s commitment to identifying and investing in premium infrastructure assets aligned with its long-term capital strategy. 

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.” 

The acquisition comes nearly five years after BlackRock and KKR’s landmark $4 billion investment in Adnoc’s pipeline assets through a Special Purpose Vehicle (SPV). This deal marked the first instance of international financial institutions investing in the infrastructure of a state-owned energy company in the Gulf region, reflecting growing investor confidence in the region’s energy sector. 

With assets under management totalling $105 billion, Lunate, launched by Abu Dhabi-based private organization Chimera Investment in September last year, continues to expand its presence in strategic sectors, cementing its position as a key player in the global alternative investment landscape. 

Peter Howley (pictured) is a Senior Partner and Chief Legal Officer at Lunate,