UAE merges energy and infrastructure ministries

The UAE has merged its energy and infrastructure ministries into a new body to be headed by the current energy minister Suhail al-Mazrouei. The merger comes as part of wider federal government restructuring that was announced today.

UAE prime minister and emir of Dubai Sheikh Mohammed bin Rashid said the reshuffle should create a more agile government that is "faster in decision-making, and more up to date with changes."

It also included the creation of a new ministry of industry and advanced technology, to be led by Sultan al-Jaber, the chief executive of Abu Dhabi's state-owned Adnoc. This will not have any impact on his role at the UAE's biggest oil producer, a source familiar with the matter told Argus.

Al-Jaber was made UAE minister of state and a member of the UAE Council of Ministers in March 2013, and then appointed Adnoc CEO in February 2016. He has also been chief executive of Abu Dhabi's renewable energy group Masdar since it was established in 2006.

Al-Jaber is widely seen as a modernizing and innovative figure, whose appointment represented a major change of direction for the UAE oil industry, launching major upstream and downstream investment schemes, opening up the sector to international investment beyond oil concessions, and even the public listing of Adnoc's fuel retail business.

Abu Dhabi's pipeline infrastructure has become an increasingly import feature of the sector, enabling the emirate to tap into new pools of global investment capital while maintaining full operating control over its assets. For its partners, it means investing in high-quality energy infrastructure assets with a low-risk profile to generate stable cash flows.

Abu Dhabi has previously issued bonds worth $3bn, backed by the Adnoc subsidiary Abu Dhabi Crude Oil Pipelines (Adcop), which transports crude from Habshan on the Gulf to Fujairah for export.

And in the last 18 months, Adnoc has sold off 49pc stakes in midstream units Adnoc Oil Pipelines (AOP) and Adnoc Gas Pipelines (AGP) for a combined $15bn.

By Adal Mirza