ABU DHABI: Abu Dhabi government-owned International Petroleum Investment Company has delayed plans to set up a refinery in Pakistan and is reviewing its Fujairah refinery project, its CEO said yesterday.
IPIC also plans to invest $70bn over three phases in Abu Dhabi’s petrochemical industry and may increase its stake in Austrian energy firm OMV and Spain’s Cepsa after finalising a deal to buy 70% of industrial services firm MAN Ferrostaal AG, part of German group MAN.
IPIC invests in oil-related projects for the government of Abu Dhabi, which is the world’s fifth-largest oil exporter. Its board approved last year plans to build a $5bn refinery with a capacity of 250,000 bpd in Pakistan.
“We are facing problems in Pakistan ... For any decision on the Khalifa Point refinery, we, both governments, need to sit together to take action,” Khadem al-Qubaisi told reporters.
“We are delaying the project till we sort out the fundamental issues,” he said, declining to elaborate.
A planned $6-$7bn refinery with capacity of 500,00 bpd in Fujairah in the UAE is also likely to be delayed, he said. “We are reviewing options. We are changing the configuration and making it smaller due to the demand-supply situation.” he said.
But a 370km (229.9 mile) crude oil pipeline from Abu Dhabi to Fujairah is on track for completion by early 2010, he said. It will carry 1.5mn bpd of crude for export from Fujairah.
The storage terminal at Fujairah will have capacity of up to 12mn barrels.
“We will lease the storage facilities to Abu Dhabi National Oil Company or operate ourselves and charge Adnoc a tariff,” he said.
Al-Qubaisi said a new joint venture company Chemaweyaat, in which IPIC is a 40% shareholder, plans to invest at least $70bn in petrochemicals in Abu Dhabi.
“In the first phase, $20bn will be invested and more than $50bn will be invested in the second and third phases,” he said, adding that the company is being set up.
Abu Dhabi Investment Council holds 40% and Adnoc holds 20% stakes in Chemaweyaat.
IPIC also plans to invest up to $2bn in the Caspian Sea region in various sectors and will involve MAN Ferrostaal in these projects, he said.
IPIC’s investment portfolio currently stands at between $12 to $15bn but it is poised to increase as it seeks new and diversified investments, al-Qubaisi said.
“In the next five years we will continue to search for opportunities taking our portfolio to $20bn. We are also looking for consolidation, looking to benefit from companies we have invested in,” he said.
“We are in discussions to increase our stakes in OMV and Cepsa because they are adding a lot of value to IPIC,” he said, adding it could be finalised in the next few weeks.
IPIC is paying cash for a 70% stake in MAN Ferrostaal AG, and may acquire the remainder by 2010, the German company’s chairman said yesterday.
Government-owned IPIC is paying 490mn euros ($670.1mn) in cash for the stake in the industrial services unit of the German group MAN.
“It is an all-cash deal and is valued at 490mn euros,” Matthias Mitscherlich told reporters. “The put option is in 2010 and the call option could be earlier,” he said referring to the sales agreement. Asked whether MAN could sell the remainder by 2010, Mitscherlich said: “I think so.”  – Reuters