20 September 2010
Dubai: The Arab Petroleum Investments Corporation (Apicorp) yesterday said it is in mature discussions to exit key equity investments and reinvest the proceeds in oil and gas projects across the Middle East and North Africa (Mena) region.

The multilateral development bank owned by the ten member states of the Organisation of Arab Petroleum Exporting Countries (Oapec) said the decision is in line with its five-year plan objective of diversifying its investment portfolio.

The UAE government owns a 17 per cent stake in Apicorp.

Ahmad Bin Hamad Al Nuaimi, Chief Executive and General Manager of Apicorp, said, "Encouraged by the strong backing of our board; the energy industry's pivotal role in economic revival and the high first-time issuer credit rating we received from Moody's, we feel it is an opportune time to initiate divestments and enter new ones that further diversify our oil and gas investment portfolio."

Al Nuaimi revealed that Apicorp is in advanced negotiations to divest two of its key equity stakes in oil and gas companies.

Promising assets
"These two investments are extremely viable and it now makes sense that the assets go to owners seeking quality oil and gas investments that are relatively liquid while Apicorp employs the sale proceeds to help develop new projects," he said.

The bank is looking at reinvesting the proceeds of its divestments across Mena in projects in upstream and midstream sectors of the oil and gas value chain.

Al Nuaimi said: "This initiative is consistent with the objectives of our five-year plan of 2010-14 to broaden our investments into new oil and gas and utility sectors. The region's energy sector offers excellent opportunities estimated at around $470 billion in investments and Apicorp intends to capitalise on these to further economic development in the Arab world."

Saudi Arabia, where Apicorp is headquartered, is a key target for further investments. "The many large oil and gas projects set to be implemented in Saudi Arabia over the coming years, estimated at $139 billion, provide exceptional equity opportunities for Apicorp.

"Through such new investments, we seek to further consolidate our already considerably strong presence in the country," Al Nuaimi added.

Saudi Arabia also has a 17 per cent stake in Apicorp. Approximately 65 per cent of Apicorp's equity investments and 37 per cent of its loan book are allocated to Saudi Arabia.

Since its founding, Apicorp has played a vital role in fostering the development of the Arab energy industry.

The bank has invested in 14 joint ventures in the oil and gas industry.

It has also participated in direct and syndicated energy transactions worth an estimated $123 billion and lent about $10 billion to member countries and other Arab countries.

Apicorp expects to double its direct investment portfolio by the end of its 2010-14 five-year plan from a value of $257 million at the end of 2006.

$470b potential investments in Mena energy sector
65% Saudi Arabia's share of Apicorp's equity portfolio
14 joint oil and gas ventures Apicorp has invested in

By Staff Reporter

© Gulf News 2010