UAE's IPIC, Kazakhstan set up $1bn energy fund

50:50 joint venture in addition to IPIC's $5bn Kazakh petrochemical project.
UAE's IPIC, Kazakhstan set up $1bn energy fund
By Firouz Sedarat and Simon Webb
Mon 21 Jul 2008 10:10 PM

Abu Dhabi government-owned IPIC and Kazakhstan have agreed to launch a $1 billion fund to invest in energy and other sectors, the company said on Monday.

International Petroleum Investment Co (IPIC) signed an agreement with the government of Central Asia's largest oil producer to set up the fund, the company said in a statement without giving details of planned investments.

An IPIC executive told Reuters that IPIC and Kazakhstan would each provide $500 million for the fund, which would have a broad array of investments.

IPIC is rapidly expanding in the international oil and gas sectors.

The company invests in oil and gas related assets for the Abu Dhabi government, which controls more than 90 percent of the oil reserves in the United Arab Emirates, the world's fifth-largest oil exporter.

IPIC already has plans to develop a $5 billion-plus petrochemical project in Kazakhstan and it has signed accords with state firms in neighbouring Uzbekistan to set up energy joint ventures there.

IPIC is also studying oil and gas opportunities with Royal Dutch Shell in Turkmenistan.

IPIC said last year it planned to increase its investment portfolio to $20 billion from $11 billion over five years and was eyeing deals in the Caspian Sea region. (Reuters)

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