The Arab Petroleum Investments Corporation (APICORP) is setting up a $150mn petroleum shipping fund which will be the first in the region to target a specific vessel category. The fund has already acquired five medium range petroleum product tankers, said the Al-Khobar/Dammam-based multilateral development bank on 25 February. These will be employed in the regional and international tanker market for five years to help meet the projected upsurge in demand for petroleum product carriers. The fund will be co-managed by Tufton Oceanic, a global fund manager in the maritime and energy-related industries.
APICORP’s Chief Executive and General Manager Ahmad bin Hamad al-Nuaimi said that the fund is “aimed at helping oil and gas companies grow their business while also generating regular yield and returns for equity investors.” He notes that the fund “helps companies meet their requirements for petroleum products transportation without burdening their balance sheets.” At the same time, it provides “a mechanism for regional investors to participate in a highly specialized investment class in international marine assets that is not normally open to them.” (CONTINUED - 703 WORDS)
