Qatar First Investment Bank (QFIB) will invest $150 million in Kuwait Energy Co. to support the firm’s expansion, the Qatari firm said.
The deal is structured in the form of a convertible murabaha which will be used to boost Kuwait Energy’s growth plans in the oil and gas exploration and production sector.
In June 2011, QFIB acquired a stake valued at $16m in Kuwait Energy. Building on its track record of profitability, Kuwait Energy recorded a net profit of $34.8m in 2011, a year-on-year rise of 59%. The company also registered a 43% rise in average annual growth in daily average production from 2007-2011Energy in June 2011, the statement said.
Abdulla bin Fahad Al Marri, Chairman of QFIB, said, “We are pleased to further fund Kuwait Energy’s growth and expansion plans. The E&P sector in the MENA region is undergoing a period of unprecedented growth and there is no doubt that Kuwait Energy is well positioned to capitalize on this opportunity. We will continue to work alongside Kuwait Energy’s strong management team and provide all the necessary support to facilitate their emergence as a leading regional independent player.”
Established in 2005, Kuwait Energy is specialized in exploration, development and production of oil and gas assets. The company operates in Egypt, Iraq, Yemen, Oman, Ukraine, Latvia, Russia and Pakistan, said a company statement.Â
QFIB made a net profit of $25.8 million in 2011, up 20 per cent from 2010, according to the company’s website.
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