Dana Gas, APICORP Sign Cooperation and Co-investment Deal
Dana Gas, the Middle East's first regional private-sector natural gas company, has signed a Memorandum of Understanding (MoU) for strategic cooperation and co-investment with the Arab Petroleum Investments Corporation (APICORP). APICORP is a leading inter-governmental regional financial institution specialized in energy finance and investment throughout the Arab region, and is headquartered in AlKhobar, Saudi Arabia.
This move, which was sealed May 26 in Sharjah, United Arab Emirates, marks another significant step in Dana Gas' continued regional expansion, with the strategic alliance signed between Hamid Dhiya Jafar, Executive Chairman of Dana Gas, and Ahmad Al-Nuaimi, Chief Executive Officer and General Manager of APICORP. The agreement provides for strategic cooperation across the Middle East Region, including co-investment in joint projects in the natural gas sector.
"We are delighted to have entered into this accord with APICORP. I know it will prove to be a rich and mutually beneficial relationship for both parties in the short and the long term," said Hamid Dhiya Jafar, Executive Chairman of Dana Gas. "APICORP's deep level of support for the hydrocarbon and energy industries in the Arab world is well known. Dana Gas aims to capitalize on the equity investment, finance and world class financial advisory capabilities which form APICORP's core business lines."
"Since both Dana Gas and APICORP are well-established regional entities, this is an important strategic cooperation for both sides," said Ahmad Al-Nuaimi, Chief Executive Officer and General Manager of APICORP. "Indeed, since APICORP is an intergovernmental institution, while Dana Gas is a private sector company with wide shareholding from throughout the GCC region, this partnership is an ideal example of Public-Sector/Private-Sector Partnership (PPP) that is being advocated globally as an important model for advancing economic growth. The partnering between Dana Gas, which has set itself the highest standards of corporate governance and transparency, and APICORP with our complementary skills and expertise in financing and investing in major energy projects, will bring a great deal of positive value to the related industries in the region, especially to the rapidly growing natural gas sector."
Dana Gas and APICORP are already partnering in the Gulf of Suez Gas Liquids Plant, which involves the engineering, fabrication, installation and operation of a high-efficiency gas liquids extraction and manufacturing plant near Ras Shukheir, on the western shore of the Gulf of Suez, Egypt. The Plant will be capable of processing at least 150 million standard cubic feet per day of natural gas and will produce approximately 120,000 metric tonnes per year of propane and butane in liquid form.
APICORP was established in 1975 and is owned by the governments of the 10 Member States of the Organization of Arab Petroleum Exporting Countries (OAPEC), which includes all the GCC countries. The objectives of APICORP are to provide equity investment, finance and specialized financial advisory services of a world class standard in support of the hydrocarbon and energy industries in the Arab world and to initiate, study and promote petroleum-related projects, and participate in their equity funding.
Dana Gas has announced that partnering with reputable companies and institutions from the region and internationally will form a key part of its strategy as it grows across the Middle East and North Africa natural gas industry, through a combination of strategic acquisitions and the development of new energy projects that contribute the region's economies, while serving the interests of its shareholders.
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- Dana Gas, APICORP Sign Cooperation and Co-investment Deal (May 31)