ERHC Energy Inc (ERHE)

[ac hotfries]

1st Mar 2007 : Web Edition No: 12808 Editor-in-Chief: Ahmed Jarallah

Energy fund has identified up to 5 potential investments; Dubai Islamic Bank $1 bln fund eyes oil assets
DUBAI (RTRS): Dubai Islamic Bank is in talks with companies including Australia’s Anzon Energy and Abu Dhabi’s Aabar Petroleum about investing in Middle East and African oil fields, an official said on Tuesday. Millennium Finance Corp, an investment bank controlled by Dubai Islamic, is setting up a $5 billion group of funds that comply with Islamic principles to invest in mainly unlisted companies in energy, telecommunications and other industries. The energy fund, to which investors such as Dubai Islamic and state-owned Dubai World will contribute as much as $1 billion next month, has identified four to five potential investments in the first year, said Laurent Lavigne du Cadet, managing director for oil, gas & energy for Millennium Finance.

They include oilfield projects in Syria, Sudan and West Africa, de Cadet told Reuters in Dubai. “One of our main strategic objectives is to co-invest in these fields with operating companies that have a lot of expertise to identify assets and to invest,” de Cadet said. The manager of the seven funds, Millennium Private Equity, is also talking to RAK Petroleum in the United Arab Emirates about joint investments, de Cadet said. Millennium Finance Corp. owns Millennium Private Equity. “We have entered into discussions in principle with these companies,” du Cadet said.

The energy fund, which aims to complete four to five transactions in the first year worth a total $600 million, will also consider investments in pipelines, shipping and industrial plants, he said. The first deal will completed by March, de Cadet said.

Dubai Islamic Bank and Dubai World, owner of port operator DP World, will provide 10 percent of the $5 billion to be raised from investors for all seven funds. The remaining 90 percent will be drawn from investors mainly in the Gulf Arab region, as well as Europe and North America, Izzet Guney, managing partner of Millennium Private Equity, said. Dubai World and Dubai Islamic said in April they would create seven funds to invest in closely held companies in industries including energy, telecommunications and financial services. The seven funds will comply with Islamic principles that ban investment in companies involved in alcohol, armaments and gambling or lending on interest.

All of the funds will be listed on the Dubai International Financial Exchange, said Keba Keinde, chief executive of the Millennium Finance Corp. Investors will also contribute up to $1 billion into the technology, media and telecommunications fund in December, with others rolling out in 2007. The fund has identified seven to eight companies in which it may invest, 75 percent of which will be based in the Gulf Arab region, Guney said. Up to seven of these projects will be concluded in 2007, accounting for up to half of the fund. The investments will include start-ups and two mobile telephone licences.

http://www.arabtimesonline.com/ARABTIMES/business/view.asp?msgID=7105