Abu Dhabi state fund seeks energy stakes

by BLOOMBERG

ABU DHABIAbu Dhabi’s state fund is looking to expand its energy investments, with US$5 billion (RM20.95 billion) spent in the past few months in nations that can offer low costs such as the US, according to the head of Mubadala Investment Co’s oil and chemicals projects.

“If you think about the low cost environment, the US ranks very high because of the feedstock,” Musabbeh Al Kaabi, the CEO overseeing Mubadala’s petroleum and petrochemicals, said yesterday in an interview in Abu Dhabi. “The natural gas is relatively attractive and the expansion in the petchem in the US is big.”

The current oil price is good for oil and gas investment, Al Kaabi said earlier in an interview on Bloomberg TV from Abu Dhabi where hundreds of energy executives are meeting at a conference. Oil demand is “exceeding our expectation”, he said. In recent months, Mubadala has spent US$1.7 billion on a chemicals joint venture in the US with Borealis AG and Total SA, and another US$2.1 billion on chemicals in Louisiana. It’s also expanding in Vietnam.

Brent crude, a global benchmark, has climbed the past five consecutive weeks, and is trading close to the highest in two years. The January contract traded at US$63.53 a barrel by 9:15am yesterday in Dubai.

Mubadala manages about US$125 billion in assets after the merger this year of two state investment companies with holdings from aerospace to energy to infrastructure. — Bloomberg