We are very proud to have been able to develop a common vision that draws on the strength of the merged organizations to create a single, integrated platform positioned for strategic growth.
2017 was an important year for the Petroleum and Petrochemicals business. The merger between International Petroleum Investment Company (IPIC) and Mubadala Development Company saw a significant transition with several global teams and businesses coming together under Mubadala Investment Company. We are establishing something new and exciting with great potential, laying the foundations for future growth.
Since the merger, we have focused on creating a unified culture across the platform bringing our highly skilled employees together. We are very proud to have been able to develop a common vision that draws on the strength of the merged organizations to create a single, integrated platform positioned for strategic growth.
One particular highlight was NOVA Chemicals’ AED 7.7 billion (US $2.1 billion) second quarter acquisition of one of the largest petrochemical facilities in the United States (US). Based in Geismar, Louisiana, this marked a major entry into the US market. Separately, NOVA Chemicals and Borealis along with Total announced the formation of a joint venture in the US Gulf Coast, encompassing both new and existing facilities to take advantage of the three companies’ technologies, operating experience and market knowledge. The joint venture builds partnerships across our portfolio.
In the upstream business, Mubadala Petroleum completed the front end engineering and design phase on its Pegaga natural gas field project in Malaysia, and is now moving it forward to the development stage. Our midstream business also continued to demonstrate robust growth and offered strong consistent revenue streams throughout the year.
As our platform expands, it is increasingly important that we collaborate with our local partners. We have always been closely aligned with UAE entities, primarily ADNOC, and in 2017, the strategic planning between our organizations gained real momentum.
Discussions with ADNOC to leverage Cepsa's Linear Alkylbenzene - LAB technology in Abu Dhabi provided a strong indicator of the opportunity, while Borealis, one of our petrochemicals assets, is working closely with ADNOC through the Borouge joint venture to deliver significantly expansion for Abu Dhabi’s downstream business.
As part of our post-merger strategy, our team has prioritized fostering closer relationships with our assets. This has included young UAE Nationals deployed to work hand in hand with companies across our portfolio. Our homegrown talent is learning about these major operations, creating significant opportunities for knowledge transfer and professional development.
For me personally, this is one of the most critical focus areas for our business and we have remained committed to providing future job opportunities for talented Emiratis.
We have spent considerable time setting out a roadmap for the business. The starting point for this vision was a strategic review of all operations in the second half of 2017. This process led us to a strategy that we are now implementing and that will steer our platform for the next five years.
We have spent considerable time setting out a roadmap for the business. The starting point for this vision was a strategic review of all operations in the second half of 2017. This process led us to a strategy that we are now implementing and that will steer our platform for the next five years.
We know that, like all sectors, our industry is undergoing significant structural disruption, driven by innovation and technology. By assessing where Mubadala can create value across our upstream, midstream and downstream businesses in light of these new shifts, we now have a clear plan to move our platform forward.
Looking ahead, we have highlighted strong opportunities in petrochemicals where growth projections remain encouraging. With world-leading technology such as Borealis’ Borstar® and NOVA Chemicals’ Advanced Sclairtech technology (AST), we are well positioned to build on our momentum in this sector. This is an exciting industry with considerable opportunities to deliver value as we move forward.
In upstream, our portfolio remains weighted towards gas, which is enjoying robust growth and will continue to play an important role locally, regionally and globally. Our midstream business is also very attractive, adding revenue stability and delivering consistent dividends.
Where our investment decisions will drive even greater value is through identifying and making the most of synergies across our businesses. In time, this integration will also see us evolve further from an operational to an investment mindset, with an increased appetite to realize value at the right time and identify value creation opportunities wherever possible.
Mubadala Petroleum pursues exploration and production in eight countries, with a focus on generating strong financial returns and contributing to the global expansion of Abu Dhabi’s energy business. Through its operations, Mubadala Petroleum is committed to adopting industry-leading practices to ensure safety and conservation of the environment. Another priority is seeking to enhance the economic wellbeing, of the communities where our assets operate through ongoing engagement.
Mubadala Petroleum pursues exploration and production in eight countries, with capabilities in generating strong financial returns and contributing to the global expansion of Abu Dhabi’s energy business. Through its business, Mubadala Petroleum is committed to adopting high practices to ensure safety and conservation of the environment. Another key priority is the economic wellbeing, employment and respect for the communities wherever our assets operate through ongoing engagement.
Dolphin Energy headquartered in the UAE, is a joint venture between Mubadala, Total and Occidental Petroleum, and is one of the largest energy investments ever undertaken in the Gulf region.
Compañia Española de Petróleos (Cepsa) is a fully integrated oil and gas company operating at every stage of the hydrocarbon value chain, including exploration and production, refining and petrochemicals, as well as gas, electricity and oil product marketing. Cepsa is also investing in renewable energy in the Spanish market.
OMV, headquartered in Vienna, Austria, is an integrated, international oil and gas business working to produce oil and gas, and innovative energy and high-end petrochemical solutions – in a responsible way.
Oil Search is an oil and gas exploration and development company that has been operating in Papua New Guinea (PNG) since 1929, becoming PNG's largest oil and gas producer and the third-largest exploration company in Australasia.
Once petroleum resources have been extracted and undergone initial processing to separate and stabilize them, our midstream operations oversee the transportation of oil and gas to end-users or plants, where they are further processed. At this stage, crude oil and other liquids are sent to refineries through pipelines, by ship or truck. Gas is transported via pipelines, or liquefied and shipped as liquid natural gas (LNG) for regasification close to end-users. Storage is also required for both oil and LNG.
Gulf Energy Maritime (GEM) is one of the leading commercial product and chemical tanker companies in the Middle East, investing in and managing modern state-of-the-art double-hull tankers designed to carry petroleum products, chemicals and other hydrocarbons.
Arab Petroleum Pipelines Company (SUMED) is an oil and gas service provider that offers crude oil storage and transportation services between the Red Sea and the Mediterranean.
In the final phase of the petroleum value chain, known as downstream, crude oil is refined to produce fuels such as gasoline, diesel and kerosene, while oil and gas products are processed into various materials that are used to make plastics and a wide variety of chemicals such as the base for detergents.
NOVA Chemicals is one of North America’s foremost petrochemical companies committed to being an innovative leader enabling customers to deliver plastic products that make everyday life healthier, easier and safer. The company leverages its ability to deliver game changing and technology and create an exceptional customer experience to help meet the growing customer demand for polyethylene in the Americas.
Borealis, headquartered in Vienna, Austria, is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers.
Pak-Arab Refinery Ltd (PARCO), headquartered in Karachi, Pakistan, is a fully integrated energy conglomerate whose major business activities are refining, transportation, storage and marketing.
Cosmo Energy Holdings, a Japanese listed entity, is a fully integrated operator in the upstream, midstream and downstream sectors.
