A Review of the Nigerian Energy Industry

Qatar moves to become biggest shareholders in Shell

09 September 2012, Sweetcrude, LONDON – QATAR wants to become Anglo-Dutch super major Shell’s biggest shareholder by raising its stake to 7% to strengthen its ties with the oil company and further invest its wealth in western assets.

Qatar’s sovereign wealth fund managers, the Qatar Investment Authority, QIA, was looking to raise its stake from below 3%, which would make it the biggest shareholder, above Blackrock’s 5%, Reuters quoted the Middle East Economic Survey, MEES, as saying.

Shell declined to comment on the report, the news wire said.

In May, MEES reported that Qatar was looking to buy 3-5% of Shell. Shell confirmed at the time that Qatar had bought a large stake.

British stock market rules require any party to disclose a holding of over 3% in a listed company. Qatar has not made such a disclosure.

QIA has been the most active of the region’s sovereign wealth funds in recent years, deploying profit from its natural gas riches into assets ranging from German sportscar maker Porsche to British bank Barclays.

A senior executive of the Qatari fund said in April the financial crisis had restricted investment in commodities and he expected a supply-demand gap to emerge by 2016 or 2017.

Apart from Shell, QIA has bought stakes in French supermajor Total and European utilities Energias de Portugal and Iberdrola.

The fund has also been buying into Xstrata, amassing a stake of 12.3% and blocking the London-listed miner’s merger with trader Glencore.
Shell operates multi-billion dollar natural gas projects in Qatar.

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  • The Middle East countries with huge hydrocarbon deposits have blazed the trail when it comes to investing revenue receipts from crude oil sales. We commend the Qataris for their vision and steadfast dedication to staying this course and we urge the Nigerian leadership to emulate them.