Qatar First Investment Bank (QFIB) has announced the acquisition of a $16 million stake in Kuwait Energy Company, a Middle Eastern independent oil and gas exploration and production company headquartered in Kuwait. The stake was acquired from an existing shareholder and marks QFIB’s second investment in the oil and gas sector.
The acquisition was announced at a conference held at QFIB headquarters in Doha and attended by Kuwait Energy chairman and managing director Dr Manssour Aboukhamseen, Kuwait Energy deputy chairman and CEO Sara Akbar, QFIB chairman Abdulla bin Fahad bin Gorab Al Marri and QFIB CEO Emad Mansour.
Established in Kuwait in August 2005, Kuwait Energy has a proven track record of successes in the Mena region’s oil and gas fields. It has been profitable each year since inception and has increased production and reserves each consecutive year. Recently, it announced it had signed gas development contracts for the Siba and Mansuriya gas fields in Iraq. The company is focused on growth in the Middle East and North Africa region, where it has been successful in Egypt, Yemen and Oman, and has oil and gas assets in Ukraine, Latvia, Russia and Pakistan.
Investment parallels strategy
Commenting on the deal, Al Marri said: 'This is our second investment in the oil and gas sector. We could not have selected a better opportunity. Kuwait Energy fits perfectly with our strategy of investing in growing companies with outstanding management. Kuwait Energy has already established itself as a leading player, with strong positions in promising markets such as Egypt and Iraq. Furthermore, Kuwait Energy’s operations in the Mena and Eurasia markets provide a unique gateway to access niche opportunities which we aim to capitalise on.'
In his comments, Dr Aboukhamseen remarked: 'We are pleased to welcome QFIB to Kuwait Energy as a shareholder and advisor. QFIB has an excellent reputation as a leading investment bank in the region and enjoys a strong shareholder base. We aim to make the most of QFIB’s sectorial expertise, deep understanding of the Mena region and extensive network for further fund raising activities in the future.'
Kuwait Energy is seen as providing a unique gateway to opportunities in the Mena area’s important hydrocarbon reserves with lower risks. The company has a diverse portfolio of oil and gas assets and is focused on exploration, production and development of reserves and resources. Its participation interests in oil and gas assets range between 15 per cent and 100 per cent depending on the asset type and stage of the project which balances the company’s risk profile. Kuwait Energy currently operates 20 exploration and production leases, has interests in 33 others and announced a net profit of $21.9 million for the financial year ending 31 December 2010.
