The International Petroleum Investment Company (Ipic) has disclosed the law issued by the President His Highness Sheikh Khalifa bin Zayed Al Nahyan, in his capacity as Ruler of Abu Dhabi, on the establishment of Abu Dhabi National Company for Chemicals.
Ipic and Abu Dhabi Investment Council will have a 40 per cent share each while Abu Dhabi National Oil Company (Adnoc) will have the remaining 20 per cent.
Ipic announced the law during a board meeting yesterday, chaired by Minister of Presidential Affairs and Chairman Sheikh Mansour bin Zayed Al Nahyan.
The board thanked Sheikh Khalifa and General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
The new chemicals company, with Dh500 million capital, will execute a project to build the world's largest and most integrated chemicals complex.
Phase 1 of the project, which will cost billions of dollars, involves the establishment of a unit to crack raw naphtha as well as a unit for the production of derivatives of propylene and ethylene. There will also be a unit for naphtha reconstruction, the largest of its kind in the world, to produce xylene and benzene, as well as urea derivatives complex.
The complex, to be operational in 2013, will achieve Abu Dhabi government's strategy to diversify sources of income. The chemicals company law stipulates that the company shall be run by a five-member board; two from Abu Dhabi Investment Council, two from Ipic and one from Adnoc.
The Ipic board also discussed the company's 2008 performance as well as projects that are under way. Several investment opportunities, that will be disclosed soon, were also discussed at the meeting.