The oil gas industry in seeing major changes ahead as demand for fossil fuels could reduce over the coming years. Consolidation will be key across the industry to save costs and provide more capabilities. Diversification into renewable energy sources will also be very important as the millennial are becoming more selective in favour of more friendly products and services. Energy producers around the world must diversify to take advantage of this opportunity.
ABU DHABI: His Highness Shaikh Mohammad Bin Zayed, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council, has issued a resolution to merge International Petroleum Investment Company (Ipic) and Mubadala Development Company (Mubadala).
The resolution stipulated that a joint committee be created and assigned with the responsibility of merging the businesses of the two companies.
The joint committee will be chaired by Shaikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, with Khaldoon Khalifa Al Mubarak serving as Vice Chairman and the membership of Suhail Mohamed Faraj Al Mazrouei, Hamad Al Hurr Al Suwaidi, and the Chairman of the Abu Dhabi Department of Finance
Integrating the two entities would create greater benefits and enhanced economic value to the Government of Abu Dhabi and to the oil gas industry in the region.
The combined entity will realise synergies and growth in multiple sectors including the energy and utilities sector, technology, aerospace, industry, health care, real estate and financial investments.
It will also have the ability to contribute more significantly to the diversification of the economy, in line with the Abu Dhabi Plan and the country’s long-term vision. It would also build on the creation of quality, long-term employment and development of human capital in critical sectors for the emirate.
The two companies will continue to operate independently until the joint committee concludes its assignment.