In the spotlight: Mubadala and its interests in North Africa

Abu Dhabi-based global investment firm, Mubadala Investment Company, is one of the largest sovereign wealth funds and invests in more than 50 countries. With assets under management of over US$225bn, Mubadala is a shareholder in many petrochemical companies including Cepsa, OMV, Cosmo Oil, PAK Arab Refining (Parco), Nova Chemicals, Borealis, Oil Search, Dolphin Energy and BP.

It is in northern Africa however that the company is seeking to boost growth through investments in sectors such as technology, agribusiness and biotechnology as well as expanding their oil and gas portfolio. Here is an overview of their key interests:

In Egypt:

  • Mubadala Petroleum holds a 20% stake in the Nour North Sinai Offshore concession and 10% in the Shorouk concession from Italy-based Eni. The Shorouk concession is offshore Egypt where the Zohr gas field is located (thought to be the largest deposit in the Mediterranean Sea, with natural gas reserves estimated at 30 trillion cubic feet).
  • Mubadala’s other Egyptian operations are run through the Arab Petroleum Pipelines (SUMED), a JV with the Egyptian General Petroleum Corporation. In February 2019, SUMED secured a deal from Saudi Aramco Products Petroleum Trading Company, to provide 222,000 cubic meters of gas oil storage capacity in Sidi Kerir for re-export to Europe.
  • Mubadala and Abu Dhabi National Oil Company (ADNOC) own Borouge, Abu Dhabi’s largest petrochemicals complex – 60% is owned by ADNOC and 40% is owned by Borealis (which is 67% owned by Mubadala). In February 2018, ADNOC awarded contracts to other Mubadala-owned entities, including Cepsa and OMV.

In Libya:

  • Mubadala operates via its subsidiary Liwa Energy. In 2005, Liwa Energy was awarded an exploration and share of production contract by the Libyan government. Although the licence was not extended after five years, Mubadala continues to be present in Libya with a 24.9% stake in OMV.
  • OMV has been operating in Libya for many years and own a 25% stake in the Zueitina Oil Company.
  • Cepsa has the marketing rights for the Sarir and Messla crude grades which are produced in Eastern Libya and exported via the Hariga port.

In Tunisia:

  • OMV owns several Tunisian entities, including OMV Durra. A key OMV subsidiary, OMV Tunisia Upstream was sold to a subsidiary of Panoro Energy in 2018.

In Algeria:

  • Cepsa owns Compania Espanola de Petroleos which holds stakes in Algerian fields Ourhoud (ORD), Rhourde el Krouf (RKF), Timimoun, Rhourde er Rouni II and Bir el Msana. Cepsa also owns MEDGAZ, the submarine natural gas pipeline between Algeria and Spain, along with two international companies Sonatrach and Gas Natural Fenosa.

In Morocco:

  • Cepsa holds stakes in the JV, Petrosud, which is focused on the marketing of marine oil at the port of Agadir.
  • To expand its oil business in Morocco, Cepsa along with Derhem Holding formed Atlas Nord Hydrocarbures, a 50/50 joint venture, with the objective of building 100 service stations in five years.