ABU DHABI 1 May 2017: Following the announced initial public offering (IPO) by neighbouring oil giant, Saudi Aramco, the UAE has ruled out any share float of its own oil arm, Abu Dhabi National Oil Company (Adnoc).
Responding to a question on the upstream models of other oil producers and the planned share float of Saudi Aramco, the UAE Energy Minister said the UAE’s petroleum sector had its own unique circumstances, and that the government does not see a need to take Adnoc public.
Minister Suhail Al Mazrouei pointed to other UAE companies like Mubadala Investment Co. (recently formed through the merger of Mubadala Development Co. and International Petroleum Investments Co. (Ipic), which invests in various downstream industries as well.
The minister added that the UAE would continue to pursue its commercial interests in oil and gas investments, and that its planned increase in oil production capacity to 3.5 million barrels per day by 2018 was part of the UAE’s strategy to have a sufficient buffer that allows it flexibility in the market, thereby avoiding any shocks to oil markets.
In a recent panel meeting, Minister Al Mazrouei responded to a question on Asian companies looking to invest in UAE oil concessions, explaining that such recommendations and decisions are the purview of the Supreme Petroleum Council.
He noted that it was understandable for oil consumer nations to be interested in investing in upstream oil production assets, but that all decisions would be made on a commercial basis in a manner that serves the interests of the UAE.
Al Mazrouei’s comments came during a session on the region’s oil policy moderated by Richard Mably, Global Commodities Editor at Reuters News and organised by global information provider Thomson Reuters on the occasion of the 150th anniversary of its presence in the Middle East and North Africa (Mena) region, said Wam.
By Rajive Singh