UAE not mulling Aramco-like ADNOC IPO: Mazrouei
"Our situation in the UAE is different. I don't think we have discussed or seen a need to IPO ADNOC," UAE Energy Minister Suhail Mohamed Al Mazrouei says during event in Dubai
The United Arab Emirates has not felt the need for or discussed the listing of state-run Abu Dhabi National Oil Company (ADNOC) — similar to Saudi Aramco’s planned initial public offering (IPO) — the country’s energy minister Suhail Mohammad Al Mazrouei has said, according to Gulf News.
When asked by the newspaper if the government would consider offering shares of ADNOC, Al Mazrouei said: “Our situation in the UAE is different. Since the beginning we have foreign investors, and they are our partners and shareholders, when it comes to operating companies. I don’t think we have discussed or seen a need to IPO ADNOC.”
Al Mazrouei said they would continue to integrate ADNOC’s subsidiaries for efficiency.
“There is going to be a continuous engagement to cut costs and optimise. We would continue doing that,” he said at a conference in Dubai.
“ADNOC is looking at several opportunities of optimising cost. Are they looking at more opportunities to merge, I can say yes. Have they reached that recommendation to come, we will have to wait and see,” he added.
“As a responsible player, we need to have that buffer to ensure that we don’t have shocks. Those buffers were very helpful to avoid surges in the market that was hurting the economy. The last thing we want is a bust followed by a boom,” he added.
Additionally, the energy minister is happy with compliance on the last year’s agreement between OPEC members and non-OPEC countries to cut output.
“We are happy with the performance of the commitment. We still have time to evaluate and decide. I hope that we would get together to form a single opinion,” Al Mazrouei said.
OPEC is scheduled to meet on May 25th to discuss whether to extend output cuts of 1.2mn barrels per day for another six months.