Swicorp takes majority stake in Middle East drilling rig firm

The company, which will be operated by Mosvold Shipping Holding Ltd., has contracts with Maritime Industrial Services (MIS) for the construction of two Super M2 F&G jackup rigs, which are under construction at the MIS fabrication base and shipyard in Sharjah, UAE, and an option to acquire two additional rigs.

These rigs are ideally suited for drilling operations in the relatively shallow waters of the Persian Gulf.

Swicorp Joussour Company's strategic objective is to invest in energy and related sectors that can directly benefit from the MENA region's competitive advantages. Presently, the Middle East is the biggest and fastest growing jackup market in the world.

Joris Vreeburg, Senior Investment Manager at Swicorp, Private Equity said:

"Two drilling rigs have recently been ordered from UAE-based Maritime Industrial Services Co, with expedited delivery dates in December 2009 and March 2010, with an option for two further rigs. Construction of the first unit is already well underway."

He added: "Mosvold has a very successful track record, extensive experience in the drilling industry and has again demonstrated that it is able to attract top tier managers and investors. The oil & gas industry makes up the backbone of the Middle East's economy and this company will be able to tap into the region's demand for more offshore drilling rigs. The company will benefit from strong local knowledge combined with industry expertise from a small group of dedicated investors."

Faysal Hamza, Executive Director, Swicorp, Private Equity, said: "We believe that offshore drilling benefits from the continued boom in oil prices and it therefore fits nicely within our investment scope. We expect that sustained high oil prices in combination with a challenge to replace reserves will continue to support high dayrates for these types of rigs. The Persian Gulf has historically been relatively underdeveloped in this field, but we think this will change due to a depletion of easily accessible onshore resources and a general need for more oil and gas production."

Swicorp has an extensive track record of pioneering transactions across the MENA region over the last 20 years.

With the relocation of Swicorp's group headquarters to Riyadh, and its extensive network of offices in Tunis, Dubai and Algiers, a wealth of in-depth local knowledge is provided expertise, plus its Geneva presence (offering financial advisory services) and proximity to major European financial centres provides access to international corporations and leading edge expertise.