Abraaj Capital and Kuwait Energy Sign Strategic Investment Agreement
- Abraaj Capital’s investment to support Kuwait Energy’s development and growth plans to scale up ahead of future IPO
- Backing Kuwait Energy’s strong management team to create regional independent upstream oil & gas champion
Dubai, UAE, April 10, 2012: Abraaj Capital, a leading private equity manager investing in high growth markets, and Kuwait Energy, one of the fastest growing independent upstream oil and gas exploration and production companies in the Middle East, today announced an Agreement in which Abraaj Capital’s APEF IV Fund would support a strategic investment in Kuwait Energy. Abraaj Capital’s investment, through APEF IV, will enable Kuwait Energy’s ongoing growth and development plans and facilitate its emergence as a regional independent exploration and production (E&P) pioneer with world-class expertise.
Established in 2005, Kuwait Energy currently has a diverse portfolio of oil and gas assets across production, development and exploration phases, with MENA operations in Egypt, Iraq, Yemen and Oman. In addition to covering the MENA region, the Company is focused on exploration, production and development of oil and gas reserves in Ukraine, Latvia and Russia. The Company has a proven track record in growing annual production and reserves while being profitable every year since inception.
Dr. Mansour Aboukhamseen, Executive Chairman, Kuwait Energy, commented: “At Kuwait Energy, we play an important role in supporting national economies and meeting global energy demand. Through this new partnership with Abraaj Capital, we will be strongly positioned to realize our growth plans, which we are confident, will help us emerge as the leading independent E&P Company in the region.”
Mustafa Abdel-Wadood, Chief Executive Officer, Abraaj Capital Limited, said: "We are very pleased to announce the investment in Kuwait Energy, a regional leader in exploration and production. This investment is the latest to be made through the Abraaj Private Equity Fund IV (APEF IV), which announced its inaugural transaction in December 2010, and has subsequently announced a number of additional transactions across diverse geographies and sectors which speaks to the strength of the pipeline and our ability to execute on our access to businesses benefiting from the region's increasingly positive economic environment. Given the continuing strong regional fundamentals, we see a very robust deal pipeline, across a range of high growth sectors moving ahead in 2012 and beyond."
Commenting on the transaction, Ahmed Badreldin, Senior Partner and Co-Head of Large Cap Private Equity, Abraaj Capital, said: “The growing E&P sector presents unique opportunities in the MENA region and the potential of independent sector champions such as Kuwait Energy has not been fully exploited. Through this investment, Abraaj Capital will support Kuwait Energy’s growth and expansion, working alongside the Company’s strong management team, which has an established track record of success across the markets in which it operates.”
Sara Akbar, Chief Executive Officer, Kuwait Energy, concluded: “This strategic investment comes at an opportune moment in the ongoing growth story of Kuwait Energy. Today, we are in the process of increasing production across the region as we continue to identify additional reserves and use new technologies to further exploit existing assets. We believe that Abraaj Capital will make a significant contribution to the success of Kuwait Energy at a time of exciting growth and expansion.”
About Abraaj Capital
The Abraaj Capital group is a leading private equity manager investing in high growth markets. Since inception in 2002, it has raised over US$ 7 billion and distributed around US$ 3 billion to investors. Headquartered in Dubai, the Abraaj Capital group employs over 170 people and has a presence in Riyadh, Istanbul, Cairo, Singapore, Mumbai, London, Karachi, Beirut, Ramallah, Amman, Casablanca, Algiers and Tunis. The group has helped accelerate and facilitate the growth of over 50 companies in 15 countries in the region, in attractive and fundamental sectors such as healthcare, education, energy, aviation and logistics.
The Abraaj Capital group manages eight Funds: four Private Equity Funds, Riyada Enterprise Development (a Fund dedicated to small and mid-cap companies in the Middle East), Kantara (a Fund dedicated to small and mid-cap companies in North Africa), ASAS (an income-generating, real estate Fund) and a 2004 vintage real estate Fund. The Abraaj Capital group currently has over US$ 6 billion of assets under management. Funds managed by the Abraaj Capital group have holdings in over 35 companies in the region, which collectively employ in excess of 30,000 people, including Air Arabia, the region’s leading low-cost carrier, Network International, the largest independent payment solutions provider in the Middle East and Africa, Integrated Healthcare Holdings, one of the largest private healthcare groups in emerging markets, and Al Borg Laboratories, the Middle East’s largest privately owned medical testing laboratory business.
In 2011, Abraaj Capital was ranked the largest private equity firm in emerging markets worldwide by Private Equity International. In addition, Abraaj Capital has won many regional and international awards, including the ‘Middle Eastern Private Equity Firm of the Year’ for seven consecutive years, awarded by Private Equity International.
Abraaj Capital Limited, a member of the Abraaj Capital group is licensed by the Dubai Financial Services Authority (DFSA).
About Kuwait Energy
Kuwait Energy is one of the fastest growing independent oil and gas exploration and production companies operating in the Middle East. The Company has been profitable since inception in 2005, and currently operates in Egypt, Iraq, Yemen, Oman, Ukraine, Latvia, Russia and Pakistan. Kuwait Energy’s proven and probable reserves at year end 2010 were 48.8 million barrels of oil equivalent and its current production is ~17,500 barrels of oil equivalent per day.