Abu Dhabis International Petroleum Investment Company (IPIC) expects to receive $4 billion in cash for a crude pipeline it built in the Gulf state, enabling it to repay some upcoming debt maturities, it said in an investor call.
The state-owned company built a crude oil pipeline from Habshan in the west of the United Arab Emirates to its eastern port of Fujairah to bypass the narrow Strait of Hormuz shipping route in the Gulf, which Iran has threatened to block as western sanctions on its oil exports tighten.
IPIC undertook the pipeline project and Abu Dhabi National Oil Companys (ADNOC) onshore unit ADCO will be the operator. IPIC is in talks with Abu Dhabis department of finance and the Supreme Petroleum Council (SPC) on reimbursement for the investment on the pipeline, senior executives said in the call.
IPIC anticipates finalising provisional acceptance of the handover of the pipeline to ADNOC by the end of this month.
The $4 billion reimbursement, which will be repaid in a phased manner over the next 12 months, will be partly used to pay debt maturities arising this year.
IPIC has a 67.5 billion Japanese Yen ($659 million) facility maturing in June and Dhs $2billion denominated debt maturing in September.
