Abu Dhabi Merger to Build Oil Producer Dwarfing OPEC’s Libya
- Sovereign funds Mubadala, IPIC to join amid lower oil prices
- Oil production, refining, chemical assets span Canada to Japan
Oil transfer pipes and storage silos which form part of the Abu Dhabi Crude Oil Pipeline, known as Adcop, are seen on the day of pipeline's inauguration at Fujairah port in Fujairah, United Arab Emirates, on Sunday, July 15, 2012. Abu Dhabi is exporting its first cargo of oil today from a pipeline that bypasses the Strait of Hormuz, shipping the crude to a refinery in Pakistan, the head of the emirate's International Petroleum Investment Co. Said.
Photographer: Duncan Chard/BloombergAbu Dhabi’s proposed merger of two of its largest sovereign investment funds would create a global energy business that produces more oil than OPEC member Libya and with more assets than ConocoPhillips.
The Persian Gulf emirate with about 6 percent of the world’s crude reserves will combine Mubadala Development Co. and International Petroleum Investment Co. to cut costs and boost efficiency, the state news agency WAM reported Wednesday. The deal would pool assets of about $135 billion, many of them non-energy-related, and debt of about $42 billion, according to Bloomberg calculations. ConocoPhillips, by comparison, had $97 billion in total assets as of Dec. 31, 2015.