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Apicorp’s ambitious reinvestment plans


The Arab petroleum Investments Corporation (Apicorp), a multilateral development bank owned by the 10-member states of the Organization of Arab Petroleum Exporting Countries (OAPEC) has said it is in discussions to exit key investments and reinvest the proceeds in new oil and gas projects across the MENA region.

"Encouraged by the strong backing of our board; the energy industry's pivotal role in economic revival and the high first-time issuer credit rating we received from Moody's, we feel it is an opportune time to initiate divestments and enter new ones that further diversify our oil and gas investment portfolio," said Ahmad Bin Hamad Al-Nuaimi, Chief Executive and General Manager of Apicorp.

Al-Nuaimi revealed that Apicorp is currently in advanced negotiations to divest two of its key equity stakes in oil and gas companies.

"These two investments are extremely viable and it now makes sense that the assets go to owners seeking quality oil and gas investments that are relatively liquid while Apicorp employs the sale proceeds to help develop new projects," he said.

The bank is looking at reinvesting the proceeds of its divestments across MENA in projects in upstream and midstream sectors of the oil and gas value chain. "This initiative is consistent with the objectives of our five-year plan of 2010 - 2014 to broaden our investments into new oil and gas and utility sectors," said Al Nuaimi.

"The region's energy sector offers excellent opportunities estimated at around US$470bn in investments and Apicorp intends to capitalise on these to further economic development in the Arab world."

Saudi Arabia, where Apicorp is headquartered, is a key target for further investments by the Multilateral Bank. "The many large oil and gas projects set to be implemented in Saudi Arabia over the coming years, estimated at US$139bn, provide exceptional equity opportunities," said Al Nuaimi.

"Through such new investments, we seek to further consolidate our already considerably strong presence in the country."