RAK Petroleum on course to becoming global oil & gas player

RAK Petroleum PCL, the oil & gas company registered in the Ras Al Khaimah Free Trade Zone today outlined the major steps the company has taken to become a global Oil & Gas player at the Ordinary General Meeting (OGM) that took place in the presence of the company’s Vice Chairman, Board of Directors, senior executives and shareholders at Al Hamra Fort Hotel, Ras Al Khaimah.

Reviewing the performance of the Company during the 461 days ended 31st December 2006, Vice Chairman Hussein Sultan Al Junaidi said the net profit for the said period amounted to over AED180 million (US$50 million), which represented an average net return of six per cent to shareholders. Deposits and gains from investments in financial markets accounted for these returns as the Company was mainly evaluating major investment and acquisition opportunities during the initial year.

‘During the early part of 2006, efforts were concentrated on recruiting strong, talented management for the Company. We were successful in assembling a small diverse team with extensive international oil & gas experience,’ Al Junaidi said in the Chairman’s report to the OGM.

Al Junaidi added that the shareholders’ initial investment of three billion dirhams (US$816 million) in RAK Petroleum has grown to AED 3.192 billion (US$864 million) since the formation of the company on 27th September 2005. The company has an authorised capital of five billion dirhams although the issued and paid-up share capital now stands at three billion dirhams.

The Vice Chairman stated that RAK Petroleum’s geographical focus would be in the Gulf Region close to the emirate of Ras Al Khaimah and in North Africa while the business focus would be in the areas of upstream oil & gas production and development, midstream gas transportation and storage, and in due course downstream gas processing and petrochemical projects.

Referring to the current strengths and future plans of the Company, Al Junaidi said that the recent agreements with Indago Petroleum Limited (Indago) and Gulf Keystone Petroleum Limited (Gulf Keystone) will position RAK Petroleum on course to develop into a major regional oil & gas player by building a diverse portfolio of reserves around an experienced, UAE-based management team.

RAK Petroleum acquired all of Indago’s exploration and production assets on April 5, 2007. As per another agreement signed on 13th April 2007, RAK Petroleum will acquire all of the issued and to be issued share capital of Gulf Keystone, subject to shareholder approvals and Algerian regulatory consents. These two transactions build on the earlier investment in Anzon Energy Limited.

‘Together, the three operations offer an attractive portfolio of technical expertise, production and development assets that are complementary to the Company’s regional and international ambitions, relationships and financial capacity,’ said Al Junaidi.

The OGM approved the audited accounts for the period ended December 31, 2006 and the Auditors’ report. It also approved the recommendation of the Board of Directors to appoint KPMG as Auditors of the Company for the year ending December 31, 2007 for a fee which may be fixed by the Board.

‘RAK Petroleum has been following a studied approach in expanding to its target markets, while consolidating its gains and strengths. Now the Company is armed with the resources, expertise and foothold to more vigorously pursue its regional and international agenda,’ said Philip Turberville, Chief Executive Officer of RAK Petroleum.

Information from: www.ameinfo.com