Mubadala Petroleum’s CEO optimistic about the future

WAM ABU DHABI, 27th October, 2013 (WAM) — The Chief Executive Officer, CEO, of Mubadala Petroleum, a wholly-owned subsidiary of Mubadala, is optimistic about the company’s future development, according to an interview released today by the organisers of the ADIPEC 2013 exhibition and conference, which takes place in Abu Dhabi early next month.

The CEO, Maurizio La Noce, spoke first about the progress of work offshore Tanzania, where Mubadala Petroleum is in partnership with UK-based Ophir.

“The East African margin is clearly an attractive exploration province. There have been a number of significant gas discoveries made, which point to a highly prospective basin. In Block 7 in Tanzania, having shot a large 3D seismic survey in 2010 and additional 2D seismic last year, we expect to spud our first exploration well before the end of this year. We are also looking at other opportunities in the region, driven by the exploration pillar of our strategy and also our mandate to seek out projects supporting delivery of additional gas supplies to the U.A.E.. East Africa holds significant potential from both these aspects. We are excited about growing our presence in the region and working in this emerging basin.

Mubadala Petroleum sits in ‘a rather unique place in the international market,’ La Noce noted, referring to its government connections through its parent company, owned by the Government of Abu Dhabi. This, he said, allowed it to draw on ‘the strong relations and goodwill that our owner has developed with a range of like-minded companies’, while it has also developed strong commercial partnerships in the Middle East and elsewhere.

At the same time, he said, “projects like Nong Yao (Gulf of Thailand), which is our most recent development to be sanctioned, demonstrate our growing operational capability. Indeed, this project is drawing on our experience in operating Jasmine, a highly successful field also in the Gulf of Thailand where we will shortly produce our 50 millionth barrel – five times what was expected when the project was sanctioned, as well as the Manora and Ruby fields that are also being developed in South East Asia. We believe we can offer strong partnerships, both with governments and commercial partners, alongside technical and operational capability and a record of project delivery.” Another recent development, he noted, was approval for the development of an oilfield development project off the coast of Thailand, with partners Kris Energy.

He added that by the time ADIPEC 2013 opens, Mubadala Petroleum hope to have established steady production from its Ruby gas field in Indonesia.

“The construction, installation and commissioning of the new facilities and associated pipeline infrastructure have gone very much to plan. And crucially, the safety performance delivered by the team over the 10 million man hours of the project has also been exceptional and comparable to that reported by the top 10 percent of OGP members.” “The gas produced by Ruby – 100 million cubic feet per day when the field is on plateau – is dedicated to a fertiliser production plant in East Kalimantan. This facility is operated as part of the Indonesian Government’s national food security programme. Targeting the local gas market in this way enables us to move more quickly than had we chosen to go down an LNG export route. It enabled us to build stronger partnerships locally, based on a visible commitment to contributing to local priorities. We see this as an important base from which we can seek out other opportunities in Indonesia,” he added.

Delivering a message to those who will take part in the ADIPEC 2013 business conference session, La Noce said, “First and foremost, the ADIPEC Business Conference features a formidable line up of CEOs and ministerial representatives of the key players. It will be a chance to hear the thoughts and engage in dialogue with some of the most influential people in our industry. That is the convening power of ADIPEC and I am certainly looking forward to participating in what I believe will be an exciting and extremely interesting two days of engagement and debate.” WAM/ES/CM