The International Petroleum Investment Company (IPIC) of the United Arab
Emirates (UAE) announced yesterday that it has got a syndicated term loan
facility of US$625 million to finance its acquisition of 20 percent share of
Japan's energy company Cosmo Oil, Emirates News Agency reported.
The loan facility was provided by the National Bank of Abu Dhabi(NBAD) and
the Bank of Tokyo-Mitsubishi UFJ (BTMU), according to the report.
The Abu Dhabi-based IPIC signed a strategic partnership with Cosmo Oil last
September to acquire the latter's 176,000,000 shares(a 20 percent shareholding)
in order to promote its energy business in the Asia Pacific region and the U.S.
West Coast as well as to pursue joint project opportunities.
The investment by IPIC in Cosmo Oil represents one of the largest UAE
investments in Japan, which accounts for some 40 percent of the UAE oil exports.
Cosmo Oil is one of Japan's leading energy companies with activities across
the value chain from exploration and production to refining and marketing to
petrochemicals. Its current refining capacity stands at 635,000 barrels per day,
representing 13 percent of Japan's total refining capacity.
The partnership with IPIC will enable Cosmo Oil to carry out its mid and long
term growth strategy as it plans to upgrade the supply chain system, strengthen
exploration and production, develop export sales, upgrade refineries and work
closely with energy companies which have close relationships with IPIC.
The acquisition of stake in Cosmo Oil is part of IPIC's investment
diversification plans, said Khadem Al Qubaisi, managing director of IPIC.
The partnership with a leading global player such as Cosmo Oil will allow
both companies to pursue investment opportunities in the rapidly expanding
sector of oil, Qubaisi added.
Wholly owned by the Abu Dhabi government, IPIC focuses on investment in the
hydrocarbon sector outside the Emirate of Abu Dhabi, with an investment
portfolio valued more than 10 billion dollars.
