Abu Dhabi state outfit continues expansion by acquiring Aabar stake
ABU Dhabi state-owned company Mubadala Development is to pay $877 .5 million for a 90% interest in Asian-focused oil explorer Pearl Energy.
Pearl is owned by Aabar Petroleum, a shareholding company listed on the Abu Dhabi stock exchange.
The sale of Pearl and the recent divesture of Aabar's drilling subsidiary, Dalma Enegy, would give the company more than $1.3 billion, which Aabar could use to buy new oil and gas assets.
Aabar has realised significant profits from its investments in Pearl and Dalma. It completed the purchase of Pearl in 2006 for $550 million and bought Dalma in 2005 for $135 million. It recently sold Dalma to Gulfcap Group for $446 million.
Mubadala's proposed purchase is part of an expansion plan that has seen the cash-rich company buying into a number of energy assets in recent years.
The Mubadala offer for 90% of Pearl is subject to a formal sale and purchase agreement and the approval of shareholders.
Aabar's board has already voted in favour of the takeover by Mubadala, which invests money on behalf of the Abu Dhabi government.
Pearl has upstream assets in South-East Asia. The assets comprise participating interests in 19 contract areas in Asia, eight each in Indonesia and Thailand, two in Vietnam and one in the Philippines.
Pearl operates 15 of the concessions and in 2007 had a net production of about 19,000 barrels per day of oil from three fields in Indonesia and one offshore development in the Gulf of Thailand.
Mubadala has a 51% stake in the multi-billion dollar Dolphin Energy company, which is importing gas from Qatar to the United Arab Emirates. Its Dolphin partners are France's Total and Occidental Petroleum of the US.
In recent years, Mubadala has also invested in oilfield development and exploration in Oman.Aabar Petroleum's third-quarter 2007 revenues climbed 83% to $125 million on the back of increasing oil production from South-East Asia. Operating profit increased 58% to $51.5 million for the period.
NASSIR SHIRKHANI
© Upstream 2008
