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DOHA, Qatar, 26 February 2017
Qatar Petroleum (QP) today announced a plan to integrate the activities of Qatar Vinyl Company (QVC), which is part of Mesaieed Petrochemical (listed in Qatar Stock Exchange), into Qatar Petrochemical Company (QAPCO), which is part of Industries Qatar (listed in Qatar Stock Exchange), through a service agreement arrangement. The result will be a single company, QAPCO, operating the facilities of both companies.
The integration will not result in any change to the shareholder ownership but will allow the realization of synergies through creating a single entity that operates the assets on behalf of both companies’ shareholders.
In making the announcement, Mr. Saad Sherida Al-Kaabi, President & CEO of Qatar Petroleum, 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.”
Mr. Al-Kaabi added: “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 organization to uphold the best interest of the State of Qatar as well as each company’s respective shareholders and customers.”
The integration process is expected to start in March and to be completed before the end of the year. The integration of activities means that upon completing the integration, Qatar Petrochemical Company (QAPCO) will be a single expanded and highly synergetic operating company fully managing QAPCO’s and QVC’s current activities.
In this context, Mr. Al-Kaabi said: “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 organization.”
Mr. Al-Kaabi concluded by emphasizing that “QP remain 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.”
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About Qatar Petroleum
Qatar Petroleum is an integrated national oil corporation responsible for the sustainable development of the oil and gas industry in the State of Qatar.
QP’s activities encompass the entire spectrum of the oil and gas value chain locally, regionally, and internationally, and include the exploration, production, processing, marketing and sales of oil and gas, liquefied natural gas (LNG), natural gas liquids (NGL), gas to liquids (GTL) products, refined products, petrochemicals, fertilizers, steel and aluminum.
QP is committed to contribute to a better future by meeting today’s economic needs, while safeguarding our environment and resources for generations to come. Thriving on innovation and excellence, QP is bound to the highest levels of sustainable human, socio-economic, and environmental development.
For more information, please visit www.qp.com.qa
© Press Release 2017