DOHA: Qatar First Investment Bank (QFIB), the country's first non-affiliated Shari'ah compliant investment bank yesterday announced the acquisition of a $ 16 million stake in Kuwait Energy Company (KEC), an 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, following its investment in Qatar Engineering and Construction, also in the energy sector.
KEC Chairman and Managing Director, Dr Manssour Aboukhamseen, said that KEC is planning to list the company on the London Stock Exchange. "We have already the approval of the General Assembly. The timing has not been decided, we have to look at the condition of the company and the condition of the market. But listing (the company) is in our agenda and we are looking at London's main market. Hopefully it will take place," he said.
Dr. Aboukhamseen also said that the lsisting of the company in the Londong stock exchange will be a straightforward listing in the main market. "We looked at Global Depository Receipt (GDR) very closely and our advisors looked at it and we decided that starightforward listing is probably a better option," he said.
He said: "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."
KEC has diverse portfolio of oil and gas assets and is focused on exploration, production and development of reserves and resources. It's participation interests in oil and gas assets range between 15 percent and 100 percent depending on the asset type and stage of the project which balances the company's risk profile.
The Company with total assets of $ 740.9m in 2010, 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 December 31, 2010.
Recently, KEC 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.
Aboukhamseen, who is one of the founders of KEC told reporters that the company operations in the Shabwa province in Yemen were not affected by the turmoil in the country. "We are expanding our gas operation there. The country needs industries, hydrocarbon, proceeds of oil and gas and we are there to do it," he said. "Our production was never interrupted since last year; there was no impact of the prostests on it."
In 2010, KEC achieved an average daily production of 13,258 barrels of oil equivalent per day (boepd) and by 2015 it is targeting to achieve production of 75,000 barrels of oil equivalent (boe) per day and proved and probable reserves of 400 million boe achieved an exploration success rate of 55 percent (6 out of 11 wells), entered into Iraq with successful bids on the Siba and Mansuriya gas fields, and celebarted its 5th anniversary.
© The Peninsula 2011
