Text size:

  • Small
  • Normal
  • Large
The Northern Producer oil facility in the West Don field of the North Sea. Petrofac Ltd via Bloomberg News
The Northern Producer oil facility in the West Don field of the North Sea. Petrofac Ltd via Bloomberg News

Mubadala sells stake in Petrofac joint venture

Mubadala Petroleum has sold off its stake in an oilfield services joint venture in a bid to grow the private energy sector.

Mubadala Petroleum has sold its stake in an oilfield-services joint venture in a bid to grow the private energy sector.

The unit of Mubadala Development, the government-owned strategic investment company, offloaded its 51 per cent stake in Petrofac Emirates for an undisclosed amount to Nama Project Services, a local company. Petrofac in turn has bought half of Nama's share, upping its share in the joint venture to 75 per cent.

"Having nurtured and matured the business into a stable and profitable venture, Mubadala Petroleum's interest is now being transferred to the UAE's private sector, in line with Mubadala's strategic objectives and mandate," said Maurizio La Noce, the chief executive of Mubadala Petroleum.

"Mubadala Petroleum will concentrate on its core international E&P (exploration and production) business, and most important UAE gas supply projects.

"In this context, we will continue to support the Abu Dhabi-based Petrofac Emirates business and will look at opportunities to leverage on our existing and strong relationship with Petrofac International to identify mutually beneficial opportunities aligned with our ambitious growth objectives in our core geographies."

The move comes after other efforts to grow a more independent oil and gas sector, starting with the transformation of Mubadala Oil and Gas, a business unit of Mubadala Development, into a company called Mubadala Petroleum last year.

Since 2008 when Mubadala and Petrofac established Petrofac Emirates to serve the local market, the company has grown to employ 700 people. This year it won a series of major contracts, including a US$2.9 billion procurement, construction and commissioning package at the offshore Upper Zakum field and a $500 million engineering and construction contract to expand the onshore Bab field's gas compression facilities. Petrofac shares inched up by four pence to 1,278p in London yesterday.

"The joint venture has created business opportunities and established strong relationships over the last five years, in addition to helping Petrofac to expand our local talent pool by attracting UAE nationals to join our talented team," said Marwan Chedid,Petrofac's chief executive for engineering, construction, operations and maintenance. "Looking forward, we want to build on the success we have achieved to date, including the important projects we have secured in Abu Dhabi this year."

Last week Mubadala also offloaded a 30 per cent stake in an Indonesian concession near Natuna Island to Japan Petroleum Exploration for an undisclosed amount.

Nama Project Services is part of Nama Development Enterprises, a 20-year-old project developer in Abu Dhabi. The sale of Mubadala's stake to Nama is pending regulatory approval.



Back to the top

More articles

Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 Three generations of the Hakimi family tend to their stall Crawford Market in Mumbai. Subhash Sharma for The National

In pictures: Shopper’s delight at Crawford Market in Mumbai

Crawford Market is an old British-style covered market dealing in just about every kind of fresh food and domestic animal imaginable. Later on renamed Mahatma Jotirao Phule, the market remains popular among locals and visitors by its old name, taken from Arthur Crawford who was the first municipal commissioner of the city.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.


To add your event to The National listings, click here

Get the most from The National