Tuareg Capital, a private equity group with focus on Libya, and the Bahrain-based Capital Management House have announced that their Libya Fund has acquired a majority interest in Etelaf Oil Services, a Libyan based oil service company.

The acquisition has been made through TAB Energy, a wholly owned subsidiary of the fund.

TAB Energy will act as the fund’s platform to capitalise on the highly attractive investment opportunities within the Libyan hydrocarbon sector, a statement said.

The acquisition is the first investment by the Libya Fund, created by Tuareg Capital to capture the opportunities available in Libya across a range of sectors including oil services, healthcare, real estate and other service sectors. 

Tuareg Capital is the original promoter and fund manager of the Libya Fund and Capital Management House is the lead sponsor and was responsible for structuring both the fund and the acquisition in accordance with Shariah financing principles.

TAB Energy, through its drilling subsidiary, has already acquired a new generation on-shore drilling rig which will be operated by Etelaf, enabling it to offer world leading drilling technology to concession holders in Libya. 

An agreement has already been signed for the provision of drilling services with Woodside International, Australia’s largest publicly traded oil and gas company, the statement said. 

A management team with strong expertise in oil services and extensive experience of the Libyan market has been selected to spearhead Etelaf’s operation, it said.

Etelaf is already in advanced talks with other leading international oil companies to provide oil sector related services in Libya.

Adel Saudi, chairman and CEO, Tuareg Capital, commented: 'The Libya Fund is very selective in its investments. Our model is to identify unique opportunities through detailed and thorough due diligence that would generate superior returns. We have chosen the oil services sector since it is more suitable for a fund investment rather than E&P sector for a number of reasons including capital requirements, risk profile and time horizon.”

Khalid Najibi, vice chairman and managing director of Capital Management House and chairman of the Libya Fund, said: “Capital Management House is the first Gulf financial institution to sponsor and enter the Libyan market via a fund specialising in the growth opportunity of Libya.  We believe there is significant opportunity for value creation in Libya in not only the oil services sector, but, also in other sectors.”

Etelaf’s general manager, Tawfik Zentani, said: “We are building a leading Libyan oil services company, focused on performance, quality, trust, and international operating standards.  We are delighted to be joined in our endeavour by the Libya Fund which we believe will offer considerable financial, strategic and operational benefits.”

Tuareg Capital and Capital Management House currently envision that the Libya Fund shall be fully invested by the end of next year, the statement said. – TradeArabia News Service