Dubai-based Abraaj Capital said it has signed a strategic investment agreement with Kuwait Energy, one of the fastest growing independent upstream oil and gas exploration and production companies in the Middle East.

A leading private equity manager investing in high growth markets, Abraaj said the key investment is being made through the Abraaj Private Equity Fund IV (APEF IV) into Kuwait Energy.

Announcing the deal on Tuesday, Abraaj said this strategic partnership 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 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, remarked Dr Mansour Aboukhamseen, the executive chairman of Kuwait Energy.

'We play an important role in supporting national economies and meeting global energy demand. Through this new Abraaj tieup, 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,' he added.

Abraaj Capital CEO Mustafa Abdel-Wadood said, 'This is the latest investment to be made through APEF IV, which announced its inaugural transaction in December 2010, and has subsequently sealed a number of additional transactions across diverse geographies and sectors.'

'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,' he stated.

Commenting on the transaction, Ahmed Badreldin, senior partner and co-head of large cap private equity, Abraaj, said: 'The growing E&P sector presents unique opportunities in the region and the potential of independent sector champions such as Kuwait Energy has not been fully exploited.'

'Through this investment, Abraaj 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,' he added.

Kuwait Energy CEO Sara Akbar said 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 will make a significant contribution to our success at a time of exciting growth and expansion,' she added.-TradeArabia News Service