IPIC and Shell target Turkmenistan projects

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IPIC and Shell target Turkmenistan projects
Reuters Published: August 02, 2007, 23:15

Dubai: The UAE’s IPIC and Royal Dutch Shell are considering joint exploration for oil and gas in Turkmenistan, the UAE’s news agency WAM reported.

The International Petro-leum Investment Co (IPIC) invests in oil-related projects for the government of Abu Dhabi, which controls more than 90 per cent of the UAE’s oil reserves. The UAE is the world’s sixth-largest oil exporter.

The three companies also plan to build a $500 million urea plant with capacity to produce one million tonnes per year, WAM reported late on Wednesday.

Both the oil and gas exploration and the urea plant were pending government approval, WAM said.

“Working with IPIC to enter oil and gas sectors in Turkmenistan is an ideal opportunity to reinforce Shell’s position in the region, which is growing,” WAM quoted Gavin Graham, Shell’s vice president of new business in the region, as saying.

IPIC’s Managing Director Khadem Al Qubaisi met with Turkmen President Kurbanguly Berdymukh-amedov, WAM said.

IPIC told Reuters last month it planned an aggressive move into oil and gas exploration and production and was eyeing deals in the Caspian. IPIC aims to double its investment portfolio to $20 billion in the next five years.