Abu Dhabi is showing a renewed appetite for European oil refining assets as international companies seeks to shed them.
The International Petroleum Investment Company (Ipic), owned by the Abu Dhabi Government, yesterday said it would offer about €4 billion (Dh19.9bn) to acquire the 53 per cent of the Spanish refiner Compania Espanola de Petroleos (Cepsa) that it did not already own.
"In the context of the takeover offer, the French oil and gas company Total has irrevocably agreed to sell its 48.83 share in Cepsa to Ipic. The transaction is conditional on obtaining requisite competition law approvals," Ipic said.
The company said it would offer €28 in cash for each Cepsa share, a 23 per cent premium over Tuesday's closing price in Madrid. The stock rose sharply yesterday after the announcement, peaking slightly above Ipic's proposed offering price in afternoon trading.
"Ipic has been a shareholder in Cepsa since 1988, and we consider it an integral part of our global portfolio," said Khadem al Qubaisi, the managing director of Ipic. "We very much look forward to building upon Cepsa's foundation as one of Spain's leading companies and working together to ensure the company's continued prosperity and growth."
Ipic, which had US$48.2bn (Dh177.03bn) of assets at the end of last June, has a Government mandate to invest in energy and related assets overseas. It has built up a global portfolio predominantly in the refining and petrochemical sector, known in the industry as downstream, while other Abu Dhabi Government-owned entities such as Mubadala Development and Taqa have invested in foreign oil and gas exploration and production assets, or upstream.
During the recent economic downturn, with the geographic centre of the downstream petroleum industry shifting from West to East, Ipic has shown a propensity to acquire troubled refining and chemical assets in North America and Europe. In 2009, it acquired the Canadian commodity chemical producer Nova Chemicals, which operates large plants in Canada and Europe.
In choosing to sell its stake in Cepsa, the second-largest Spanish petroleum concern after Repsol, Total is following several other European oil companies that have recently shed domestic assets, and some US oil majors that have unloaded refining and chemical assets in Europe.
"Everybody looks to reduce their refining capacity, and we do the same. We do it in France, we do it in Europe," a Total spokesman said. "People do consume less oil in Europe. You cannot produce if you do not sell."
Total is also in talks to sell its Lindsey refinery in the UK, he said.
This month, Chevron sold its service stations and most of its fuel and lubricant business in Spain and the Canary Islands to Cepsa for an undisclosed sum.
Royal Dutch Shell is seeking to sell its UK Stanlow oil refinery to India's Essar Oil. Last year, Shell agreed to sell two Scandinavian refineries and said it would convert its Harburg refinery in Germany to a storage site.
The Swiss refiner Petroplus has announced plans to convert its unprofitable Reichstett refinery in eastern France to a storage terminal after failing to find a buyer.
Ipic started building its stake in Cepsa in 2008, as crude tumbled from its record $147 a barrel peak. In September of that year, the Abu Dhabi investment company disclosed it was in advanced talks to buy a 30.7 per cent stake in Cepsa from Spain's Banco Santander and an additional 5 per cent interest from the Spanish utility Union Fenosa.
The resulting deal boosted Ipic's holding to 45.2 per cent from 9.5 per cent, making it Cepsa's biggest shareholder. Ipic's current holding stands at 47.06 per cent.
Although Cepsa is regarded as primarily an oil refining and chemical enterprise, it has taken substantial steps in the past two decades towards transforming itself into an integrated oil and gas company, able to supply its downstream operations with feedstock from its own oil and gas production. Most notably, it has developed several oil and gas discoveries in Algeria.
Cepsa is also a partner in the Medgaz pipeline, which is expected to start up in coming weeks. Technical problems have delayed the project for more than a year. The pipeline would have the capacity to export 8 billion cubic metres of Algerian gas annually to Spain.
Some analysts have suggested that would be more gas than Spain could absorb, given declining demand in the country since the start of the economic crisis that is still gripping much of southern Europe.
tcarlisle@thenational.ae
ayee@thenational.ae
THE SPECS
Touareg Highline
Engine: 3.0-litre, V6
Transmission: 8-speed automatic
Power: 340hp
Torque: 450Nm
Price: Dh239,312
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
THE DETAILS
Solo: A Star Wars Story
Dir: Ron Howard
Starring: Alden Ehrenreich, Emilia Clarke, Woody Harrelson
3/5
Liverpool’s fixtures until end of 2019
Saturday, November 30, Brighton (h)
Wednesday, December 4, Everton (h)
Saturday, December 7, Bournemouth (a)
Tuesday, December 10, Salzburg (a) CL
Saturday, December 14, Watford (h)
Tuesday, December 17, Aston Villa (a) League Cup
Wednesday, December 18, Club World Cup in Qatar
Saturday, December 21, Club World Cup in Qatar
Thursday, December 26, Leicester (a)
Sunday, December 29, Wolves (h)
'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
UAE tour of the Netherlands
UAE squad: Rohan Mustafa (captain), Shaiman Anwar, Ghulam Shabber, Mohammed Qasim, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Chirag Suri, Ahmed Raza, Imran Haider, Mohammed Naveed, Amjad Javed, Zahoor Khan, Qadeer Ahmed
Fixtures:
Monday, 1st 50-over match
Wednesday, 2nd 50-over match
Thursday, 3rd 50-over match
RESULT
Manchester United 2 Tottenham Hotspur 1
Man United: Sanchez (24' ), Herrera (62')
Spurs: Alli (11')
What is hepatitis?
Hepatitis is an inflammation of the liver, which can lead to fibrosis (scarring), cirrhosis or liver cancer.
There are 5 main hepatitis viruses, referred to as types A, B, C, D and E.
Hepatitis C is mostly transmitted through exposure to infective blood. This can occur through blood transfusions, contaminated injections during medical procedures, and through injecting drugs. Sexual transmission is also possible, but is much less common.
People infected with hepatitis C experience few or no symptoms, meaning they can live with the virus for years without being diagnosed. This delay in treatment can increase the risk of significant liver damage.
There are an estimated 170 million carriers of Hepatitis C around the world.
The virus causes approximately 399,000 fatalities each year worldwide, according to WHO.
Specs
Engine: 2-litre
Transmission: Eight-speed automatic
Power: 255hp
Torque: 273Nm
Price: Dh240,000
Brief scores:
Toss: Pakhtunkhwa Zalmi, chose to field
Environment Agency: 193-3 (20 ov)
Ikhlaq 76 not out, Khaliya 58, Ahsan 55
Pakhtunkhwa Zalmi: 194-2 (18.3 ov)
Afridi 95 not out, Sajid 55, Rizwan 36 not out
Result: Pakhtunkhwa won by 8 wickets
How England have scored their set-piece goals in Russia
Three Penalties
v Panama, Group Stage (Harry Kane)
v Panama, Group Stage (Kane)
v Colombia, Last 16 (Kane)
Four Corners
v Tunisia, Group Stage (Kane, via John Stones header, from Ashley Young corner)
v Tunisia, Group Stage (Kane, via Harry Maguire header, from Kieran Trippier corner)
v Panama, Group Stage (Stones, header, from Trippier corner)
v Sweden, Quarter-Final (Maguire, header, from Young corner)
One Free-Kick
v Panama, Group Stage (Stones, via Jordan Henderson, Kane header, and Raheem Sterling, from Tripper free-kick)
The Farewell
Director: Lulu Wang
Stars: Awkwafina, Zhao Shuzhen, Diana Lin, Tzi Ma
Four stars
Bangladesh tour of Pakistan
January 24 – First T20, Lahore
January 25 – Second T20, Lahore
January 27 – Third T20, Lahore
February 7-11 – First Test, Rawalpindi
April 3 – One-off ODI, Karachi
April 5-9 – Second Test, Karachi
Manchester United v Club America
When: Thursday, 9pm Arizona time (Friday UAE, 8am)
Fitness problems in men's tennis
Andy Murray - hip
Novak Djokovic - elbow
Roger Federer - back
Stan Wawrinka - knee
Kei Nishikori - wrist
Marin Cilic - adductor
How to keep control of your emotions
If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.
Greed
Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.
Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.
Fear
The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.
Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.
Hope
While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.
Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.
Frustration
Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.
Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.
Boredom
Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.
Tip: Open an online demo account and get your thrills without risking real money.
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Stage 2 results
1 Caleb Ewan (AUS) Lotto Soudal 04:18:18
2 Sam Bennett (IRL) Deceuninck-QuickStep 00:00:02
3 Arnaud Demare (FRA) Groupama-FDJ 00:00:04
4 Diego Ulissi (ITA) UAE Team Emirates
5 Rick Zabel (GER) Israel Start-Up Nation
General Classification
1 Caleb Ewan (AUS) Lotto Soudal 07:47:19
2 Sam Bennett (IRL) Deceuninck-QuickStep 00:00:12
3 Arnaud Demare (FRA) Groupama-FDJ 00:00:16
4 Nikolai Cherkasov (RUS) Gazprom-Rusvelo 00:00:17
5 Alexey Lutsensko (KAZ) Astana Pro Team 00:00:19
RESULT
Shabab Al Ahli Dubai 0 Al Ain 6
Al Ain: Caio (5', 73'), El Shahat (10'), Berg (65'), Khalil (83'), Al Ahbabi (90' 2)
MATCH INFO
Austria 2
Hinteregger (53'), Schopf (69')
Germany 1
Ozil (11')
If you go
The flights
Emirates flies from Dubai to Seattle from Dh5,555 return, including taxes. Portland is a 260 km drive from Seattle and Emirates offers codeshare flights to Portland with its partner Alaska Airlines.
The car
Hertz (www.hertz.ae) offers compact car rental from about $300 per week, including taxes. Emirates Skywards members can earn points on their car hire through Hertz.
Parks and accommodation
For information on Crater Lake National Park, visit www.nps.gov/crla/index.htm . Because of the altitude, large parts of the park are closed in winter due to snow. While the park’s summer season is May 22-October 31, typically, the full loop of the Rim Drive is only possible from late July until the end of October. Entry costs $25 per car for a day. For accommodation, see www.travelcraterlake.com. For information on Umpqua Hot Springs, see www.fs.usda.gov and https://soakoregon.com/umpqua-hot-springs/. For Bend, see https://www.visitbend.com/.
