Gulfsands Petroleum forms partnership with Cham Holding
Posted: 16 October 2007
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Gulfsands Petroleum has established a strategic partnership with Cham Holding, one of Syria ’s leading business groups.
It will pursue acquisition of several high-value energy projects in Syria and potentially Iraq.
The partnership is to be established in the form of a venture company owned 65% by Cham Holding and 35% by Gulfsands with each party responsible for only their proportionate share of funding.
In addition to its minority position in the strategic partnership, it is the intention of the partners that Gulfsands should act as the Operator under any Government Contract acquired by the strategic partnership. Gulfsands will also be entitled to acquire additional direct interests in the Projects alongside any participating interests acquired by the partnership.
Cham Holding, a private joint stock company, was established in 2006 and then completed a $360 million equity raising for investment in a range of sectors including the energy sector, power generation, real estate (including hotels and leisure), finance, health and education. Cham’s significant shareholders include the Al Mashreq Investment Fund, which recently became a substantial shareholder in Gulfsands, and a number of prominent Syrian businessmen and corporations.
The company’s recent exploration success at Khurbet East in Syria and the establishment of the strategic partnership, the company will seek to build upon these important milestones with an expansion of its activities in the Middle East .
Gulfsands’ focus in the region will be on acquiring development or re-development projects with existing production infrastructure and proven oil and gas reserves, and on further exploitation and exploration projects with high potential upside, but lower technical risk.
It plans to secure early development and production of the Khurbet East discovery. Expanding its exploration efforts in Syria Block 26 during the period of the recently announced first extension of the Production Sharing Contract during the next 3 years.
It also aims of finalising formal contracts for the development of the Maysan gas gathering and processing project in southern Iraq , acquiring exploration and development rights in Kurdistan and upstream field development rights elsewhere in Iraq .
The company is also acquiring Syrian and Iraqi cross-border oil and gas development opportunities which are expected to become available in the near-term following formal Parliamentary approval of the new Oil and Gas Law in Iraq.
“We are optimistic that, in partnership with Cham Holding, Gulfsands will be able to acquire direct and indirect interests in several potentially high-value energy projects in Syria and Iraq ,” said Andrew West, Gulfsands, Chairman.
“Gulfsands is well known and respected in Syria as a highly professional operator and for its recent and significant exploration success at Khurbet East in the north east of Syria . Gulfsands is also widely recognized for its ability to work with local companies and its competence in efficiently meeting technical challenges and executing commercial projects.
“We believe our combined skill sets will help us secure one or more significant projects and provide us with the opportunity to create a great deal of value for our respective shareholders,” said Nabil Kuzbari, Cham Holding’s Chairman. |
