Browse related articles
Gases from crude oil production have, customarily, been flared, adding huge amounts of greenhouse gases to the atmosphere annually.
MTM Capital Partners Limited, a subsidiary of Man, will be the investment manager of the fund. IPIC has committed to invest an initial USD 300 million as cornerstone investor and will play a major role in the development of the fund. In addition, Fluor Cooperation, one of the world's largest engineering, procurement and construction firms and a FORTUNE 150 company will be the fund's technical partner.
Under the guidance of His Highness Shaikh Mansour Bin Zayed Al Nahyan, Chairman of IPIC, and in the presence of H.E. Mohamed bin Dha'en Al Hamili, Minister of Energy, H.E. Khadem Al Qubaisi, Managing Director of IPIC launched the initiative with the CEO of Man Group plc, Peter Clarke, and Geoffrey Isaac, the Chairman of MTM, at a ceremony in Abu Dhabi today.
Mr Clarke said Man expected investor support from around the globe. 'MTM is a leader in environmental investments in emerging markets and there is a keen appetite for investments that help protect the environment while aiming for very attractive returns,' he said.
Mr Clarke hailed the support of the Abu Dhabi Government as financially significant and environmentally responsible. He said the fund would be the first of its kind to team a global financial institution with a government that is a major player in the energy sector.
Burning off, or 'flaring' gas adds 350 million tonnes of C02 to the atmosphere annually. The World Bank Global Gas Flaring Reduction Initiative (GGFR) highlights that in 2006 oil and gas installations flared and vented 150 billion cubic metres of natural gas. This is equivalent to 25% of the annual gas consumption of the US or 30% of the EU.
The Abu Dhabi Government has played a leading role globally in pioneering environmental projects and has been working on a zero-flaring target as a strategic objective. AGEF will not only help to achieve this objective but will also contribute to reduce flaring on a global level.
IPIC is an investment company wholly owned by the Government of Abu Dhabi with a mandate to invest on behalf of the Government in the hydrocarbon sector outside the Emirate of Abu Dhabi. For over 20 years IPIC has successfully invested in and developed long term strategic partnerships with energy companies in both the private and public sectors. The strategic investment partnership between IPIC and MTM furthers this strategy and will position IPIC in a lead role in the converging energy, resources, infrastructure and environmental sectors globally.
H.E. Khadem Al Qubaisi said,
'We are excited to be part of this ground breaking initiative. Recognizing the convergence of energy, resources, and the environment has been a longstanding challenge for many countries worldwide. We believe the strategy developed by MTM solves this issue and serves as an enabler that can produce significant benefits to host countries. IPIC through its extensive relationships and activities globally is committed to playing a lead role alongside MTM in the implementation of this strategy.'
Rikky Hasan, Managing Director of MTM, who led the team that structured and negotiated the transaction said, 'It is innovative since it should not only generate attractive returns on investment while benefiting the environment, but will also contribute to the growing need for energy'.
The launch of AGEF will be a further significant step in Man's commitment to environmentally-related projects.
Facebook
del.icio.us
Digg
Posted by Medilyn Manibo, Assistant News Editor
Web Feeds