Page 25 - ARUBA TODAY

BUSINESS Tuesday 11 July 2017
A25

UAE’s main state oil company eyes partnerships, share float

DUBAI, United Arab Emir- since mid-2014 increased
ates (AP) — The United pressure on the UAE to find
Arab Emirates’ main state new ways to raise non-
oil company said Monday oil revenue, such as lifting
it is seeking to create joint some petrol subsidies and
ventures with international introducing value-added
investors and is considering tax next year.
floating shares in some of In the UAE and other Arab
its businesses in an effort to Gulf countries, citizens
raise billions of dollars and prefer to work for the gov-
create more jobs locally. ernment, where wages
The Abu Dhabi National Oil and perks are generous.
Co., or ADNOC, said it is In recent years, however,
considering an initial public Gulf governments curbed
offering for minority stakes public sector hiring in the
in some related services face of tighter budgets as
businesses, though it ruled jobs across the region’s oil
out for now floating shares and gas sector were also
in the overall company, slashed.
which will remain owned ADNOC’s plans follow a
by the Abu Dhabi govern- decision by Saudi Aramco,
ment. An oil tanker approaches the new Jetty during the launch of a $650 million oil facility in Fujairah, the state oil company of
The company said other United Arab Emirates. The Abu Dhabi National Oil Co., or ADNOC, the United Arab Emirates’ main neighboring Saudi Arabia,
plans include creating a state oil company, is seeking to create joint ventures with international investors and is consid- to sell shares for the first
ering floating shares in some of its businesses in an effort to raise billions of dollars according to
regional drilling company, plans disclosed Monday, July 10, 2017, in an article in the Abu Dhabi-based state-linked daily The time for a minority stake in
a new “energy infrastruc- National. its business. That IPO isn’t
ture venture” that bundles (AP Photo/Kamran Jebreili) expected to happen be-
select assets, and further A company press release demand for products de- to combine two major off- fore next year at the earli-
opening up its refinery and Monday sad global energy rived from hydrocarbons shore divisions to streamline est and is aimed at gener-
petrochemical operations demand is shifting to the — petrochemicals, plas- its operations amid a slump ating greater revenue for
to outside investors. East, and that this change tics and polymers. In Oc- in oil prices. the government’s public
UAE Minister of State and means a rapid increase in tober, it announced plans The drop in oil energy prices investment fund.q
ADNOC Group CEO Sultan
Ahmed Al Jaber said the
moves aim to generate China’s COSCO to buy Orient Overseas for $6.3 billion
higher revenues and cre-
ate more jobs for Emiratis.
In a statement, the com- BEIJING (AP) — China’s On Monday, COSCO’s 16.4 percent of container total price tag for the deal
pany also stressed these biggest shipping compa- shares traded in Hong Kong traffic. Orient Overseas, will be $6.3 billion (HK$49.2
initiatives “will bring signifi- ny, state-owned COSCO jumped 4.7 percent while with 103 ships, is controlled billion).
cant benefits to the UAE Shipping Holdings Co., is Orient Overseas’ shares by the family of former AP Moeller-Maersk ac-
and its citizens.” creating the world’s No. 3 soared 19.5 percent. Hong Kong Chief Executive quired Hamburg Sud of
“Most importantly, it will container shipping giant by On its own, COSCO ranks Tung Chee-Hwa. Germany in December.
create new, high-skilled acquiring rival Orient Over- No. 4 globally with 317 ships The transaction is subject to CMA CGM bought Singa-
jobs and attractive career seas (International) Ltd. and 8.4 percent of con- antitrust review by Chinese, pore-based Neptune Ori-
opportunities,” it said. Shares in both companies tainer traffic, according to European and U.S. authori- ent Lines last year.
Abu Dhabi holds the bulk surged Monday following Alphaline, an industry data- ties, according to a filing Orient Overseas reported
of the oil wealth in the sev- the announcement of the base. Adding Orient Over- with the Hong Kong Stock a loss of $219.2 million last
en-state Emirates federa- $6.3 billion deal. seas would give it market Exchange. year. It blamed a glut of
tion, one of OPEC’s largest A wave of consolidation share of 11.7 percent, mov- The filing said COSCO capacity, slow growth and
crude producers. The com- has created huge com- ing it ahead of Marseilles, will pay $10.07 per share rising fuel prices as well as
pany produces around 3 petitors in a global shipping France-based CMA CGM (HK$78.67), a premium of freight rates that sometimes
million barrels of oil per day industry that is struggling Group. The No. 1 shipper 38 percent over Orient’s dipped below those seen
and 9.8 billion cubic feet of with sluggish trade and de- is Denmark’s AP Moeller- Friday share price on the in 2009 during the financial
gas per day. pressed prices. Maersk with 643 ships and Hong Kong Exchange. The crisis.q