An international petroleum investment company is a type of firm that provides petroleum resources for its investors. It is usually created by a government or a private company. One such organization is the Abu Dhabi Petroleum Investment Company (IPC). Another is the Mubadala Investment Company PJSC.
History of International Petroleum Investment Company
The International Petroleum Investment Company (IPIC) is a government-owned investment organization based in Abu Dhabi, United Arab Emirates. IPC was established by the Government of Abu Dhabi in 1984 and was mandated to invest in global energy-related industries. IPIC is a Sovereign Wealth Fund. It has been a multi-faceted organization, including investing in hydrocarbons, retail and marketing, and industrial services. Since its founding, it has been supported by equity contributions from the Government of Abu Dhabi.
In 1986, the Government of Abu Dhabi signed an Emiri Decree no. 2 supporting IPIC. This document stated that the Company would “invest in, acquire, or acquire a stake in an energy company.” Consequently, IPIC purchased 9.6% of CEPSA, the Spanish energy company. Moreover, IPIC invested in Borealis AG and SUMED. During this period, IPIC also made an agreement to purchase a 50% stake in PARCO, a joint venture with the Government of Pakistan.
Despite having minimal profits, IPC served as a model employer for the region. Politicians in the country chose to believe the worst about the company. However, IPC was a political booby-trap. Rather than admitting their error, the regime chose to manipulate the controversy. Rather than recognizing the true facts, the leaders chose to scapegoat the company for imaginary crimes.
Mubadala Investment Company PJSC
Mubadala’s mission is to create sustainable financial returns for the emirate’s shareholders. The firm focuses on investments in sectors including oil, gas, real estate, aerospace, infrastructure, and healthcare. With assets in over 50 countries, it’s a significant player in the global investment landscape.
While it’s not a publicly traded company, the firm has a large number of investment opportunities in the public and private markets. The portfolio includes direct and indirect investments in oil and gas, petrochemicals, healthcare, aviation, real estate, and semiconductors.
The company is involved in projects in several regions of the world, including the Middle East, Europe, South America, and Asia. It has stakes in green energy firm Masdar, and in the aerospace manufacturing company Strata.
Mubadala also has a stake in the UAE’s Emirates Global Aluminium facility. It recently launched two clean energy projects in the UAE. Currently, the facility is one of the world’s largest primary aluminium producers.
In 2018, Mubadala became a part of the Abu Dhabi Investment Council. This company was also founded by the government of Abu Dhabi in order to diversify the emirate’s economy.
Mubadala is considered to be the leading strategic investment company in the UAE. Through a wide range of investments, the company hopes to create tangible social benefits for the emirate. Some of its notable investments include the Abu Dhabi National Oil Company’s stake in Masdar, and the SoftBank Vision Fund.
Abu Dhabi Petroleum Investment Company
The International Petroleum Investment Company (IPIC) is an investment company based in Abu Dhabi, United Arab Emirates. The organization’s main focus is on investments in global hydrocarbon industries. IPIC owns stakes in several of the world’s most well-known energy companies.
This company was founded in 1984 and is tasked with an ambitious mandate. Its investments range from oil to petrochemicals, and include midstream activities, exploration and production, and strategic projects for the Abu Dhabi government. Several projects have gone through the wringer, including the creation of the Abu Dhabi Crude Oil Pipeline.
Although this company has a modest asset base, its investments are among the largest in the region. The company owns stakes in several of the world’s leading hydrocarbons companies, including OMV, CEPSA, and Aabar.
One of the biggest projects IPIC has undertaken is the creation of the Abu Dhabi Crude Oil Project (ADCOP). ADCOP is a pipeline that allows the UAE to export crude oil from Fujairah directly to the rest of the world. Currently, ADCOP is used to export 600,000 barrels of Murban crude every day. The project also helps reduce insurance and freight costs, as well as the time required to transport crude.
Not surprisingly, the emirate of Abu Dhabi needs to find ways to make good use of the oil and gas money it has access to. To do so, the emirate has created the Mubadala Investment Company. When the two entities merged in late 2016, the new entity had assets worth $125 billion.
Although the Mubadala name may no longer be emblazoned across the skylines of Abu Dhabi, the company’s mission to diversify the economy remains intact. In fact, the merger has helped to pave the way for Abu Dhabi to become a much more financially efficient emirate.
Abu Dhabi Petroleum Corp. (IPC)
The Abu Dhabi Petroleum Corporation (IPC) is one of the most important companies involved in the UAE oil industry. IPC provides exploration and production services, and operates in the United Arab Emirates, Malaysia, Canada and Europe. In 2016, IPC merged with the Mubadala Development Company. Aside from producing oil, the company also invests in global energy related industries such as shipping, pipelines, and retail.
IPC, which was formed by a group of international oil companies, began operating in the Middle East in 1928. The company negotiated concessions with various governments of the region. However, operations were limited during the Second World War. With the onset of the conflict, the group had to concentrate on the search for oil in Qatar.
IPC’s initial operation involved geological surveys. Several rulers and dissident tribes were contacted in order to settle their differences. Some of the areas were protected by British gunboats.
After a few years of work, a pipeline was built to carry oil from the region. By the end of the 1960s, the UAE had become a large-scale oil producer. Its production reached 102.8 million barrels in 1965. During that year, the country’s refining capacity reached 185,000 bpd.
The Abu Dhabi Petroleum Company was founded in October 1960. Its predecessor, the Trucial Coast Development Oil Company (TCDOC), was renamed ADPC in 1963. This was when the group began the search for oil on land.
The Trucial Coast is an area of about 200 kilometers of coastline, located between Oman and Qatar. The area is protected from slave trafficking. Several hundred kilometers of coastline are under the control of the British Government.
Oil was discovered in the Trucial Coast in the 1960s. A pipeline was built from the region to the rest of the world. In the early 1970s, Abu Dhabi National Oil Company acquired 60 percent of the company. The company also acquired a 60% interest in ADMA-Opco, an oil exploration company in Abu Dhabi.
Production started in late 1969. There are 17 fields in the region that yield 3,000 barrels of oil per day. Twelve of these fields are operated by IPC. GS Energy of South Korea owns 3% of the company.