Why UAE oil reserves are so attractive for IOCs - The National

Why UAE oil reserves are so attractive for IOCs - The National:

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A map detailing Adnoc's commitments in the Arabian Gulf.
The UAE has long held the belief that IOC partnerships are beneficial.
Jaime Puebla / The National

It is not easy for International Oil Companies (IOCs) to decide what country is good for oil investments. Oil industry partnerships are long-term and capital intensive.

The amount of reserves alone is not enough to judge whether a country is better than another; nor whether political stability alone is a good indicator of a country's attractiveness. Oil investment partnerships between IOCs and oil-rich countries are complicated, requiring an assessment of many eclectic factors.

Amount of reserves, geology certainty, political stability, infrastructure, sector governance and oil prices are crucial elements of oil investment assessments. Combining the aforementioned factors with the capital-intensive and long-term nature of oil investment leads to a high level of unpredictability. The main objective of IOCs in oil partnerships is a handsome return on investment. This is how they push their stock price up and keep their shareholders happy."

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