Abu Dhabi (United Arab Emirates) plans to merge two large investment funds, International Petroleum Investment Co. (IPIC) and Mubadala Development Co., to consolidate their operations and investment power in a context of lower oil prices.
The new fund would have assets of around US$135bn (many non-oil related assets). The companies are complementary. Mudabala, through Mudabala Petroleum, has a stake in a daily oil production capacity of 411 kboe/d, a petrochemical division and a stake in clean energy company Masdar. IPIC owns Spanish oil and gas company Cepsa, which produces around 130 kb/d of oil (mainly in Algeria and Spain), Canadian petrochemical group NOVA Chemicals and a majority stake in Austrian plastics company Borealis. IPIC also owns 21% in Japanese refiner Cosmo Oil and a 100 kb/d refining capacity at the Pak-Arab refinery in Pakistan.
The new entity would then have a crude oil production capacity of 541 kboe/d, i.e. twice as much as Libya (250 kboe/d on average in May 2016) and refining capacities in Europe, Asia and Middle-East.