US Global Infrastructure Partners (GIP) and Brookfield Asset Management Inc are negotiating a joint bid for a stake in the pipeline of the United Arab Emirates (UAE) state-owned Abu Dhabi National Oil Company (ADNOC), which can be estimated at about 15 billion USD.

Italian infrastructure operator Snam SpA, Ontario-based Ontario Teachers Pension Plan, Singapore SIC GIC Ptt, as well as a Korean company are discussing the possibility of joining the same consortium aiming to acquire a 49% stake in assets.

The group is the only remaining candidate after other business representatives, including Australia’s IFM Investors Pty, a stock fund manager, dropped out. The final deal will depend on whether the consortium can provide financing, which currently seems more difficult to achieve due to tightening credit markets and falling oil prices.

Potential investors are currently conducting due diligence on the assets. No definitive agreements have been reached and the composition of the tender group may change.

Representatives from ADNOC, IFM, Ontario Teachers and Snam declined to comment at this time.

Energy assets

The UAE is one of the Persian Gulf oil producers using their energy assets to raise fresh capital in the region. In Saudi Arabia, state-owned Saudi Aramco, the world’s largest producer of oil, is planning to sell a stake in its pipeline network to raise money amid falling oil prices – an important source of revenue for the Kingdom.

ADNOC has already raised funds by leasing its pipelines and selling units in its gas station business. Several investors have submitted initial bids for the pipeline.

American corporations KKR & Co and BlackRock Inc last year, they agreed to invest 4 billion USD in ADNOC’s pipeline network, providing a two-year guaranteed return. GIC also bought a stake in the business later. ADNOC also sells a stake in its 11 billion USD drilling business to Baker Hughes Co.