Qatar Petroleum set to merge Qatar Vinyl Company and Qapco

Qatar petroleum, in its latest move to consolidate businesses, is set to merge the Qatar Vinyl Company (QVC) with Qapco.

The move is part of the world’s fourth-biggest oil and natural gas producer’s plans to trim costs in its domestic operations and expand internationally, reported Bloomberg News.

According to the plan, QVC, a part of Mesaieed Petrochemical Holding Co, will cease to exist as a unit. It will be merged into Qatar Petrochemical Co (Qapco), a unit of Industries Qatar (IQ), said an e-mailed statement.

Qatar Petroleum is understood to own 74.2% of Mesaieed and 51% of Industries Qatar, both listed companies in the Qatar Stock Exchange.

Gulf Times reported a QP spokesman as saying that the resulting entity will be a single company — Qapco — which will operate the facilities of both companies.

“This integration aims to enhance the competitiveness, financial performance, and resilience of both companies. The shareholders of IQ and MPHC will directly benefit from this integration as it reduces the operating cost and enhance the profitability of both companies,” QP president and chief executive Saad Sherida Al Kaabi said.

The integration procedure is expected to begin in March and completed before the end of the year.

Al Kaabi assured that no Qatari jobs would be lost as a result of the integration.

“In line with our vision and commitment to building world-class Qatari talent, we will ensure that all Qatari nationals currently employed by QVC will be integrated into the new Qapco organisation,” he was quoted as saying by The peninsula.

Qapco is engaged in the production and sale of ethylene, polyethylene, hexane and other petrochemical products while QVC is more into the sale of petrochemical products like caustic soda, ethylene dichloride and vinyl chloride monomer.

Qatar Petroleum, the world’s biggest producer of liquefied natural gas, is also merging its two LNG units this year — Qatar Liquefied Gas Co and Ras Laffan Liquefied Natural Gas Co.