Plans to Develop and Launch New Oil and Gas Projects in Arab Countries
Cairo: In a step that supports Egyptian investments in the oil sector, Arab Petroleum Investments Corporation (APICORP) - in which the Egyptian government has a 3% stake - announced the sale of its 12.5% stake in the Bahrain National Gas Company (BANAGAS) to Kuwait-based Boubyan Petrochemical Company, K.S.C.
Commenting on this deal yielding positive returns for the ten OAPEC member states including Egypt, Ahmad Bin Hamad Al-Nuaimi, Chief Executive and General Manager of APICORP said, "As a result of BANAGAS's continuous success since the investment of OAPEC member states 33 years ago, we feel it is appropriate to monetize our share in it by transferring it to a strategic GCC-based investor so that we can advance our plans to initiate and develop other oil and gas projects in more Arab countries."
"In order to ensure a market-driven sale value for our shareholders, APICORP implemented a highly successful three stage auction process. In the end, Boubyan, a strategic regional company specialized in chemicals and petrochemicals from Kuwait, won with the most competitive bid," stated Al-Nuaimi.
APICORP's strong financial position received a boost recently when an Extraordinary General Assembly meeting held in Cairo, in May this year, unanimously decided to increase its subscribed capital by 173% from $550 million to $1,500 million. The General Assembly also resolved to double its authorized capital from $1.2 billion to $2.4 billion. APICORP's paid-up capital also increased 36% from $550 million to $650 million.
From his side, Dabbous Mubarak Al-Dabbous, Deputy Chairman of Boubyan said, "This investment represents the reinforcement of Boubyan's commitment to its strategy of making strategic direct investments in successful ventures in the chemical, petrochemical and oil and gas sectors, especially in the hydrocarbon-rich GCC region."
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About APICORP
APICORP is a multilateral development bank established in 1975 and is wholly owned by the governments of the ten member states of OAPEC, namely: the United Arab Emirates (17%), Bahrain (3%), Algeria (5%), Saudi Arabia (17%), Syria (3%), Iraq (10%), Qatar (10%), Kuwait (17%), Libya (15%), and Egypt (3%). APICORP's total assets at the end of 2010 amounted to US$4.3 billion. The Corporation has its headquarters in Al-Khobar/Dammam area, Eastern Saudi Arabia, and operates a Banking Branch in Manama, Kingdom of Bahrain. APICORP has played a vital role in fostering the development of the Arab energy industry. APICORP has played a vital role in fostering the development of the Arab energy industry. APICORP has made equity investments in a total of 22 oil and gas joint venture projects worth in excess of $13 billion. At the same time, APICORP has participated in direct and syndicated energy finance transactions worth in excess of US$126 billion.
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© Press Release 2011