Abu Dhabi National Oil Co (Adnoc) plans to set up an international arm to invest in oil and gas firms abroad, the al-Ittihad newspaper reported on Wednesday citing the official gazette.

The new firm Adnoc International Limited, formed after legislation from the UAE's president, will be capitalised at $1 billion. It will be independent from the mother company but fully owned by Adnoc and will be based in the UAE's capital Abu Dhabi.

It will invest in, own and run oil and gas firms and assets for exploration, drilling and production as well as marketing, refining and distribution outside Abu Dhabi but it will also conduct activities in the emirate, from which comes the bulk of oil production of the OPEC's third largest producer.

The report did not say when the company will start operations. – Reuters