International Petroleum Investment Company – History and Future
The International Petroleum Investment Company was formed in the 1980’s by the Abu Dhabi government. Its mandate was to invest in hydrocarbon industries around the world. IPIC wanted to enhance Abu Dhabi’s presence in the international hydrocarbons industries. Chairman H. H. Sheikh Mansour bin Zayed Al Nahyen has been overseeing the company personally, and the results speak for themselves.
Overview – IPIC invests in hydrocarbons and related sectors globally. The company primarily focuses on sectors, such as crude oil, petrochemicals, and gas pipelines. International Petroleum Investment Company also invests in nitrogenous fertilizers and other hydrocarbon process industries. With an investment portfolio at an estimated $15 billion, it is obvious that this company is a leader in global hydrocarbon companies. IPIC is continuing to maximize its value for shareholders, such as the Government of Abu Dhabi.
One of the reasons why this company sees so much success is due to its wonderful attitude towards employees. The International Petroleum Investment Company implements excellent human resources strategies, to secure the well-being of personnel. After all, a company or organization’s performance ultimately depends on the talent, hard work, and corporation of its staff. IPIC’s employees have always been and will continue to be the driving force behind its influential results.
History – The Company was created in 1984 as a venture between ADIA and ADNOC to focus on oil-related, international investments and acquisitions. In 1988, the company’s first investment was in the Spanish refiner CEPSA. IPIC acquired a significant minority which resulted in success and profits. Since then, IPC’s partners have been selected, based on their experience with adding value through technology and resources.
Over the years, the International Petroleum Investment Company has built an extensive portfolio that consists of investments in Egypt, Austria, Spain, Pakistan, South Korea, Japan, Germany, UAE, Portugal, and just recently—Canada. In addition to investing in hydrocarbon and oil, IPIC also invests in power utilities, plants, parts, and shipping.
Just recently IPIC launched a $3.5 million loan to support recent acquisitions, including the $500 million takeover of Nova Chemicals Plant in Calgary, Alberta. The deal will allow NOVA to fix up its balance sheet so that it can operate fully and expand, making it a very good investment for the International Petroleum Investment Company. IPIC will give NOVA a chance to improve liquidity.
Future – The Company’s ultimate success still lies ahead. IPIC does indeed have all that it takes for moving forward, and hopes to earn commercial levels of return, in the near future. International Petroleum Investment Company is currently in talk with a few substantial international companies, and is considering whether or not to develop a run a new refinery in 2010 with international assistance.By the looks of things, that plan will probably come to pass.
IPIC will also continue playing an important role in the Abu Dhabi government. Its mandate is to safeguard transportation and exportation of crude oil by identifying international investments for the long-term. Only time will tell which hydrocarbon market investments will pay off, although IPIC’s choice in international partners has consistently been good decision making.