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Abu Dhabi, UAEMonday 10 December 2018

Sheikh Mohammed lauds Adnoc's new approach

Abu Dhabi Crown Prince says Adnoc's corporate strategy will help the country meet its fiscal and employment goals

Adnoc headquarters in Abu Dhabi. Courtesy Adnoc
Adnoc headquarters in Abu Dhabi. Courtesy Adnoc

Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, said Adnoc's new strategic approach, which includes expanding the types of partnerships it forms and spinning off some of its services businesses, will help the economy meet its key fiscal and employment goals.

Sheikh Mohammed tweeted on Monday morning: “Adnoc's initiative will expand strategic partnership opportunities, deliver strong financial returns, and support the UAE’s future growth,” referring to an exclusive report in The National, in which Adnoc's chief executive, Sultan Al Jaber, expanded on the strategy he has been putting in place since taking over early last year.

“Adnoc's new initiative will drive investment and growth to ensure its continued success,” added Sheikh Mohammed, who is also chairman of the Supreme Petroleum Council, Abu Dhabi's highest energy sector decision-making body, and of Mubadala Investment Company, the emirate's US$125 billion strategic development fund, about a third of which is in international energy investments.

“Expanding strategic partnership opportunities of our national companies enhances their competitiveness and leadership regionally and globally,” said Sheikh Mohammed.

Adnoc has been expanding its view of partnerships as it seeks to have more of an active portfolio approach to its vast assets and unlock both the monetary and strategic value including the transfer of technology, creation of jobs, and the bringing in of new expertise.

Last year, the group signed agreements with partners for the last two shares in Abu Dhabi's lucrative onshore concession, the Abu Dhabi Company for Onshore Petroleum Operations (Adco). In December, it agreed to take a 2 per cent stake in London-based oil major BP in exchange for a 10 per cent award in Adco. In February, Adnoc agreed to award the final 12 per cent of Adco available to foreign partners, to a Chinese consortium comprising China National Petroleum Corp and CFTC China Energy, a financial conglomerate.

In Monday's story in The National, Mr Al Jaber said that these types of partnerships would be extended and could include one of the big trading houses, pension funds, private equity investors and companies specialising in infrastructure development.

He also said that Adnoc is considering some initial public offerings of select services businesses .He said that neither the main assets of Adnoc nor a share at the group holding level would be sold out of state ownership.