The onset of the coronavirus crisis shook up the oil and gas industry, causing many private equity players to reevaluate their roles in the space. But that hasn’t stopped a group of deep-pocketed investors from lining up one of the biggest energy deals in recent memory.
The state-owned Abu Dhabi National Oil Company has agreed to sell a 49% stake in its newly created gas pipeline unit for $10.1 billion to a six-firm consortium including Global Infrastructure Partners, Brookfield Asset Management, Singapore’s sovereign wealth fund GIC and Ontario Teachers’ Pension Plan Board. The move values the unit, which holds lease rights to 38 pipelines, at $20.7 billion.
The announcement lands amid a turbulent and unpredictable year for the oil and gas industry. Earlier in 2020, US producers faced vast surpluses as a result of declining travel and price cuts by OPEC producers and Russia, pushing crude futures prices below zero for the first time on record.
Yet, oil is currently rebounding, underlined by WTI crude prices passing $40 per barrel earlier this week for the first time since March.
Source: Pitchbook
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