ConocoPhillips and IPIC Sign Agreements

ConocoPhillips and International Petroleum Investment Company (IPIC) of Abu Dhabi today announced the signing of a Memorandum of Understanding (MOU) to identify new upstream and downstream opportunities for joint investment.

The parties also announced the signing of a Heads of Agreement (HOA) to conduct a feasibility study for construction of a world scale refinery in Fujairah, United Arab Emirates. The feasibility study will focus on developing the optimum configuration for the Fujairah Refinery Project, which would have a capacity of 500,000 barrels per day and serve global markets. Upon completion of the feasibility study, and if the parties decide to proceed with the project, it is expected that ConocoPhillips and IPIC would form a joint venture to own and operate the refinery that would be 51 percent owned by IPIC and 49 percent by ConocoPhillips.

"We are excited about this collaboration and the opportunities it could provide," said Paul Warwick, president of ConocoPhillips for Middle East and Africa. "These agreements enable ConocoPhillips and IPIC to examine ways to jointly expand our respective global refining businesses in fast-growing markets as well as jointly develop new upstream business opportunities."

"IPIC's core strategy is to broaden its portfolio by leveraging its downstream investments to diversify into the upstream. These agreements allow us the opportunity to work with and benefit from ConocoPhillips' world class technical capabilities," said Khadem Al Qubaisi Head of IPIC's Investment Division. "We can see exciting opportunities to grow in the refining and marketing business in many parts of the world. We also see possibilities to grow regionally in the upstream business in both gas and oil developments and ConocoPhillips is an ideal company with which to pursue opportunities."

IPIC is wholly owned by the government of the Emirate of Abu Dhabi. It was established in 1984 to invest in the hydrocarbon and related sectors outside of the Emirate of Abu Dhabi.

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Posted 27/07/06

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