Qatar First Investment Bank (QFIB) has acquired a $16mn (QR58mn) stake in Kuwait Energy Company (KEC), which is also seeking a listing on the London Stock Exchange.
Aboukhamseen (left) with Mansour after reaching the stake sale deal
The stake in KEC, Kuwait’s private sector hydrocarbon exploration and production entity, was acquired from an existing shareholder and is QFIB’s second investment in the oil and gas sector.
KEC, which reported a net profit of $21.9mn in 2010, is strengthening its capital base as it embarks on expansion, which includes developing recent discoveries and drilling additional wells in the Middle East and North Africa (Mena) region, especially in Egypt. Its capital, after QFIB’s stake buy, will total $462mn. By 2015, KEC is aiming to produce 75,000 barrel of oil equivalent per day (boepd) from 13,258 boepd in 2010. KEC’s exploration programme for 2011 is set to be similar to that in the previous year with the drilling of 13 wells in Egypt, Yemen, Pakistan and Ukraine.
“KEC’s operations in the Mena and Eurasia markets provide a unique gateway to access niche opportunities which we aim to capitalise on,” said Abdulla bin Fahad bin Gorab al-Marri, chairman of QFIB with an authorised capital of $1bn (QR3.65bn).
When asked about the size of its holding, QFIB chief executive Emad Mansour said it cannot be revealed at this stage and neither did he disclose the details regarding the seller but held that the decision (to acquire a stake) made a “strategic” fit.
KEC, which has a diverse portfolio, is focused on growth in the Mena region, including Egypt, Yemen, Oman and has oil and gas assets in Ukraine, Latvia, Russia and Pakistan.
The company’s participation in oil and gas assets range between 15% and 100% depending on the asset type and stage of the project, which balances its risk profile.
Confirming that it was seeking a listing on the LSE, KEC chairman and managing director Manssour Aboukhamseen said “it will be a straight forward listing” rather than going through the global depositary receipts (GDRs) but added that the listing dates has not yet been finalised.