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Qatar Petroleum announces the integration of two companies

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LNG Industry,


Qatar Petroleum (QP) has announced that it intends to integrate the activities of Qatar Vinyl Co. (QVC) – a part of Mesaieed Petrochemical – into Qatar Petrochemical Co. (QAPCO) – part of Industries Qatar – through a service agreement arrangement.

The integration is expected to commence in March 2017 and be completed before the end of the year. The result of this integration will the creation of a single company, QAPCO, which will operate the facilities of both companies. Although the integration will not lead to any changes in shareholder ownership, it will allow the realisation of synergies through the creation of a single entity that operates the assets on behalf of both companies’ shareholders.

The President and CEO of Qatar Petroleum, Saad Sherida Al-Kaabi, said: “This integration aims to enhance the competitiveness, financial performance, and resilience of both companies. The shareholders of Industries Qatar and Mesaieed Petrochemicals will directly benefit from this integration as it reduces the operating cost and enhance the profitability of both companies.

“We will pool the distinctive resources and capabilities of QVC and QAPCO to create a higher value for both of their respective shareholders, while strengthening our global competitive position in the petrochemical industry. I am confident that we will create an even more effective and efficient organisation to uphold the best interest of the State of Qatar as well as each company’s respective shareholders and customers.

“In line with our vision and commitment to building world class Qatari talent, we will ensure that all Qatari nationals currently employed by QVC will be integrated into the new QAPCO organisation.

“QP remains fully committed to deliver on its strategic objectives of enhancing and growing the financial performance and competitive position of its business portfolio, and to support the State of Qatar’s continued and sustainable economic growth.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/27022017/qatar-petroleum-announces-the-integration-of-two-companies/


 

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