On Thursday, Niel Petroleum SA - a Luxembourg company active in the fields of oil and gas exploration and production - held a press conference to present details of its investment in a Kuwait oil project.
The three-way tie including New World Oil and Gas Plc, based in London, and Al Maraam Al-Ahliya Company for General Trading and Contracting LLC of Kuwait, was held after the official stock exchange announcement in which Al Maraam is to invest US$20 million in Niel Petroleum for a 20% stake; in turn Niel petroleum will complete their intention (stated last September) to take a majority (75%) stake in New World through a US$25 million subscription of newly issued New World shares.
To compelte the triangle initiated by these two agreements, New World has agreed acquire (subject to the fulfillment of certain contractual obligations) a 60% financial interest and 49% of the issued shares in Al-Maraam for an amount of 5 million. The main goal of this acquisition is to combine the potential of Al Maraams license with the management expertise and experience of New Worlds management team to derive the maximum economic benefit for Al Maraam and its shareholders.
The association of Niel, New World and Al-Maraam is aimed to create a dynamic group bringing together the technical and financial expertise necessary for the enhancement of the value held by Al-Maraam in Kuwait. These transactions are expected to help Niel develop its existing projects more efficiently and expose it to new exciting markets, creating value for Niels shareholders.
As part of the agreements, New World will nominate a General Manager of Al-Maraam
Al Maraam is a Kuwait LLC that is licensed to drill for, produce and store oil and gas in Kuwait, as well as to market and sell Kuwait crude internationally. It is represented by Dr Muaaz KH M Alfahaid, a previous minister and prominent member of the Kuwaiti parliament who studied in Strasbourg and the Sorbonne and is an entrepreneur who has been engaged in forming business ventures for the past two decades. He said that Niel Petroleum is a company that is looking to the future. Kuwait is open to European cooperation and by this transaction will give many opportunities to Niel Petroleum.
Kuwait has announced a programme to increase current production from 2.8 million barrels of oil per day to 3.5 million by the end of 2015. Al-Maraam will participate in all future bid rounds for the drilling and production of oil and gas in Kuwait.
Niel Petroleum also have a Real Estate Fund in Luxembourg, Element One, in which they currently invest in Europe and the US, and are lookign at two projects in Kuwait.
Photo by Geoff Thompson including Dr Muaaz KH M Alfahaid (Al Maraam), William Kelleher and Peter Sztyk (New World), Nicolas Bourg & Laurent Foucher (Niel Petroleum)
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