Strategic investments and synergies critical to global energy sector progress

Abu Dhabi, UAE -- Making strategic long-term investments, and pooling resources from within the oil and gas industry is central to energy sector progress, said senior officials at a recent gathering of the Middle East Petroleum Club (MEPC) in Abu Dhabi.

Guests at the MEPC “Al Multaqa” event were given an exclusive preview of key issues that will be addressed at this year’s Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC). Through its participation at Al Multaqa, the International Petroleum Investment Company (IPIC), provided insight on IPIC’s 30-year track record as a long-term global investor.

Commenting on IPIC’s participation at ADIPEC, H.E. Suhail Mohamed Al Mazrouei, IPIC managing director and UAE minister of energy, said “Over three decades, IPIC has invested in major energy and petrochemical assets across the world. Through its strategic local and international partnerships IPIC has successfully positioned Abu Dhabi as the world’s fifth largest producer in petrochemicals.

IPIC is a sponsor of ADIPEC, and considers the conference a good opportunity to interact with other global energy players to discuss the future of the industry. Through its investments in R&D, the IPIC Group has positioned itself among global industry players through its innovation centres which aim to develop new technologies and industrial products.”

“Such success is reinforced by the leadership of Abu Dhabi’s rulers, under the direction of IPIC’s Chairman, H.H. Sheikh Mansour bin Zayed Al Nahyan, to ensure that the group maintains a balance between persevering as a global industrial player, while continuing to achieving strong returns on investments.”

Additionally, the Abu Dhabi government elected to merge IPIC and Mubadala, according to IPIC Managing Director and UAE Minister of Energy, H.E. Suhail Mohamed Al Mazrouei. “The merger between IPIC and Mubadala is a further step in the company’s development, and will create a global investment champion that acts as an engine for sustainable economic development. The combined entity will give Abu Dhabi a competitive advantage, and at the same time, provide the company with investment opportunities that contribute to a diversified UAE economy.”

Today’s challenging economic landscape often makes basing business decisions on market sentiment, rather than on fact, the safer choice – potentially missing the significant opportunities presented by those challenges, and their ability to create a more resilient industry.

“What should be our next move? Should we look for strategic long-term investments, or should we keep a low profile until oil prices have fully recovered? Those are the types of questions that both investors and oil companies are seeking to answer” said Ruba Husari, managing director of consulting firm Iraq Insight.

“However, the current state of markets and the downslide volatility of oil prices feeds into a climate of rumour and speculation. Major forums like ADIPEC enable members of the energy community to exchange views, debate solutions, and share perspective on the future of the industry. This helps in the decision-making process and creates a counter weight to market sentiment”.  

Al Multaqa, which means “the gathering” in Arabic, also invites representatives from both existing and prospective ADIPEC participating countries to gain insight about the knowledge-exchange and business opportunities available at ADIPEC. The conference will feature 25 international pavilions, including companies from major oil producing countries, including the U.S., Saudi Arabia, China, and Brazil, as well as emerging markets, such as Indonesia, Malaysia, and Spain.

“Every industry has its ups and downs, and the key to surviving these cycles is staying ahead of the curve when it comes to the latest developments and best practice,” said Ambassador of Spain to the UAE, José Eugenio Salarich. “ADIPEC allows all members of the energy community to keep in touch with decision makers, stay abreast of changes in policy, as well as witness the latest in innovation and technology.”

“Every industry has pockets-of-excellence that others can benefit from, but companies often operate in silos making sharing of information a challenge. ADIPEC provides a centralized global platform and an opportunity to share information and learn from each other,” said Siebe Butter, consulting director at Deloitte. “Especially in challenging times like these, where companies are seeking solutions to sustainably lower costs and improve efficiencies, the platform ADIPEC provides is of great value.”