Apicorp, a multilateral development bank that has so far invested more than $16bn in 22 oil and gas joint venture projects and made a net profit of $109mn in 2012, is looking at supporting projects this year that will boost the Arab region’s midstream and downstream capabilities.
“As part of our current five-year strategy, we will continue to investigate opportunities to diversify investment and financing portfolios into new oil and gas and utility sectors,” said Ahmad bin Hamad al-Nuaimi, CEO of Apicorp, in which Qatar owns 10% stake.
“We are particularly looking at supporting projects that will boost the region’s midstream and downstream capabilities, which are crucial for Arab countries to maximise economic benefits from energy resources,” he said, highlighting that total assets rose to more than $5bn, an increase of 9.6% from 2011; while net asset value per share jumped 7% to $1,744.
Apicorp, which was established by the Organisation of Arab Petroleum Exporting Countries, is particularly keen to support cross border projects that facilitate collaboration between Arab countries, he said.
In the immediate pipeline are a number of opportunities including acquisitions and joint ventures, al-Nuaimi said, adding though it has traditionally invested largely with governments and their national oil companies, “we are also seeking to significantly broaden our exposure with the private sector.”
Apicorp has maintained a strong focus on diversifying its funding composition and expanding its services for clients in 2012. In February last year, it closed a three-year $667mn syndicated Shariah-compliant facility aimed at increasing its medium term funding, while in October, it partnered with J P Morgan to widen its energy trade finance services.
Another key strategic focus in 2012 was the development of specialised investment funds in vital energy sectors, a strategy that resulted in the establishment of the landmark $150mn Apicorp Petroleum Shipping Fund aimed at leveraging growth opportunities in the petroleum product tanker charter market.
Co-managed by Tufton Oceanic, the fund is the first investment fund to be established by Apicorp and the first fund in the region aimed at a specific vessel category.
Over the last 37 years, Apicorp has invested, as an equity owner, in a total of 22 hydrocarbons joint venture projects worth in excess of $16bn. It has also participated in direct and syndicated energy finance transactions worth in excess of $130bn. The aggregate commitments in these transactions, both in equity and debt, are valued at $11bn.