Abu Dhabi buys stake in Tanzanian oilfield

Abu Dhabi has bought one-fifth share of an oil field in Tanzania through a subsidiary of its investment fund Mubadala Development Company, it was announced last week. London-listed Dominion Petroleum Limited, which has exploration licences for oil fields in Congo, Uganda, Kenya and Tanzania sold a 20 percent stake in deepwater Block 7 to Mubadala Oil & Gas, a division of Abu Dhabi’s investment fund. Completion of the transaction, valued at $20m, will follow the setting up of Mubadala’s subsidiary and is then subject only to Tanzanian Government approval. “This opportunity represents an important step in the continued growth of Mubadala’s international oil and gas portfolio and our entry into an important, new high-impact exploration province. We look forward to working with Dominion, with its knowledge and experience of the region, on this exciting new venture and, potentially, others in the future,” said Maurizio La Noce, CEO of Mubadala Oil & Gas. “We are very pleased to have Mubadala as a partner in Tanzania and look forward to building a strategic relationship with them throughout the region,” added Andrew Cochran, CEO of Dominion. Mubadala last month announced a first-half profit for 2011, which it attributed to higher commodity prices and increased contributions from its semiconductor business. Unlisted Mubadala, which holds stakes in General Electric and private equity firm Carlyle, said its total comprehensive income was AED198m ($53.9m) for the period ended June 30. That compares with a loss of AED4.4bn for the same period last year, according to a statement. In April, Mubadala said that it planned to invest $16.3bn in 2011, nearly four times the average amount it deployed over the last three years. Abu Dhabi\'s ruler reshuffled the board of Mubadala in August, replacing two of its members. Abu Dhabi sits on 10 percent of global oil reserves and accounts for 90 percent of the UAE\'s oil output, making it one of the world\'s wealthiest economies.