• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 15 minutes WTI @ 67.50, charts show $62.50 next
  • 18 hours The EU Loses The Principles On Which It Was Built
  • 10 hours Starvation, horror in Venezuela
  • 44 mins Mike Shellman's musings on "Cartoon of the Week"
  • 14 hours Why hydrogen economics does not work
  • 11 hours Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 10 hours Tesla Faces 3 Lawsuits Over “Funding Secured” Tweet
  • 23 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 2 days Chinese EV Startup Nio Files for $1.8 billion IPO
  • 3 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Crude Price going to $62.50
  • 6 hours California Solar Mandate Based on False Facts
  • 6 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 23 hours Saudi Arabia Cuts Diplomatic Ties with Canada
Is This The Next Natural Gas Giant?

Is This The Next Natural Gas Giant?

Nigeria has long been renowned…

Dollar Strength Is Likely To Cap Oil Price Gains

Dollar Strength Is Likely To Cap Oil Price Gains

An exceptionally strong dollar and…

Kuwait Energy In Talks To Merge With London-Listed Firm

London Stock exchange

After failing to complete an initial public offering in London last year, independent oil and gas company Kuwait Energy may find a way to get access to the London Stock Exchange through a possible merger with a company already listed there.

Kuwait Energy is in merger talks with London-listed SOCO International, in what could be a merger of equals, Reuters reported on Monday, citing two sources familiar with the talks.

In May 2017, Kuwait Energy said that it would seek an IPO on the main market of the London Stock Exchange. At the time, Kuwait Energy expected the admission to take place in June 2017, and to raise gross primary proceeds of around US$150 million from an issue of new shares.

But at the end of June 2017, Kuwait Energy said that it had been unable to complete its IPO as announced in its Intention to Float in May.

“However, in light of positive feedback from potential investors, the Company remains committed to obtaining a London listing and continues to explore its options,” the firm said back in June.

According to Reuters sources from today, the possible merger would one of equals—two companies with similar operations and size, but very different geographical positions.

Kuwait Energy has assets in Iraq, Egypt, Yemen, and Oman. SOCO International, on the other hand, has interests in Vietnam, the Republic of Congo (Brazzaville), and Angola.

While SOCO International is in a stronger liquidity position and has more mature assets, Kuwait Energy has huge potential—it also has more debt and needs funding to realize that potential, one of Reuters’ sources said.

Related: Iranian Oil Tanker Engulfed In Flames Following Collision

As of June 2017, SOCO had cash and liquid investments balance of US$132 million with no debt, it said in the H1 2017 interim results release.

“With volatile oil prices, it makes sense for small oil companies to merge as getting bigger scale gives them balance sheet to face volatility. SOCO would get a portfolio of low cost, attractive assets, and for Kuwait Energy it would be a way to monetise some of their holdings,” Thomas Streater, head of investment research at MB Commodities Capital in Dubai, told Reuters.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News