(Bloomberg) -- BlackRock Inc. and KKR & Co. sold their 40% stake in Adnoc’s oil pipeline network to an Abu Dhabi-based firm five years after acquiring the asset in a deal that marked the first investment by foreign asset managers in the infrastructure of a Gulf state-owned energy company. 

The firms sold their holdings to an entity called Lunate, which has $105 billion of assets under management, according to a statement. Terms weren’t disclosed, though Bloomberg News has previously reported that the stake could fetch more than $4 billion including debt.

Adnoc is the United Arab Emirates’ state energy firm and pumps almost all the oil in the OPEC member. The Lunate deal returns a significant chunk of the company’s oil pipeline network back to Abu Dhabi. 

KKR and BlackRock agreed to invest $4 billion in the business in 2019. Adnoc further reduced its stake to about 51% later that year, after selling shares to Abu Dhabi Retirement Pensions & Benefits Fund and Singapore sovereign wealth fund GIC Pte.

Lunate is a rising player in Abu Dhabi, an emirate that’s used energy riches to become a major force in the investing landscape. The city is home to wealth funds Abu Dhabi Investment Authority, Mubadala Investment Co. and ADQ, which oversee well over a $1 trillion in assets in total. 

Chimera Investment LLC, part of a business empire overseen by Abu Dhabi’s Sheikh Tahnoon bin Zayed Al Nahyan, set up Lunate last year. Chimera and Abu Dhabi wealth fund ADQ were in talks to commit more capital to Lunate, Bloomberg has previously reported.

Sheikh Tahnoon, a brother of the UAE’s ruler and the country’s national security adviser, presides over many of these entities — including ADIA and ADQ — as well as conglomerate International Holding Co.

Read More: Abu Dhabi’s IHC Plans to List $27 Billion Holding Firm Next Year

(Adds deckheads, details on Lunate)

©2024 Bloomberg L.P.