UAE ENOC and Saudi Al-Drees join the competition for National Petroleum

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Sources: Determining the acquiring company during the current month to start the procedures for due diligence

Competition has flared up between a number of regional and local petroleum companies to acquire the National Petroleum Company, a subsidiary of the National Service Projects Authority.

Sources close to the negotiations said that the UAE group, ENOC, known as the Emirates National Oil Company, owned by the Dubai government, has entered among the companies wishing to acquire the National Petroleum Group.

The sources added that the Saudi Al-Drees Petroleum and Transport Services Company also expressed its interest in the deal within the framework of discussions that took place with a number of investors during the last stage.

Sources had previously reported that the Abu Dhabi National Oil Company (ADNOC), which is owned by the Abu Dhabi government, and the “Energy Arabia” company affiliated with the Egyptian Citadel, are competing to buy “Wataniya Petroleum”.

The sources said that a company is scheduled to settle this month to start due diligence checks.

She indicated that all aspects of investment are available in the National Petroleum Group, whether selling a share of the company or selling it completely, which will be determined by the potential investor, and the sources expected that the deal may be implemented during the first half of 2021.

The sources said that the oil sector is one of the economic sectors that attract investors at the present time, especially with the implementation of an economic reform program based on the liberalization of energy prices.

Earlier, Hala Al-Saeed, Minister of Planning and Economic Development and Chairman of the Board of Directors of Egypt’s Sovereign Fund, said that the fund agreed last February with the National Service Projects Organization to invest in its companies, and two companies were selected (the National Company for Bottling Natural Water “Safi” and the National Petroleum Company). Studies by a number of experts, specialists and houses of expertise.

The minister added that an investment newspaper for these companies has been completed, and it will be offered to the private sector to invest in it as a first stage, then it will be put up on the Egyptian Stock Exchange and available to all Egyptians to own and invest in their shares through the stock exchange, and cooperation with the National Service Projects Authority will take place in other companies that will be announced. Consequently, these companies will be offered to the private sector according to conditions and controls that ensure that they achieve the highest returns for the Egyptian state and create real investment opportunities for the private sector in the first phase.

The article, “ENOC” of the United Arab Emirates and “Al-Drees” in Saudi Arabia, are joining the competition for National Petroleum. It was written in the Al-Borsa newspaper.