Project Example 36

Project Example – Feasibility Study, Strategic Planning, Establishing Companies and Private Equity Placement.

Assignment Establishing a private sector oil and gas company – AlDorra Petroleum Services K.S.C.C.
Client Name Promoters of AlDorra Petroleum Services Company
Client’s Activities Kuwait-based investment holding with operating subsidiaries within the oil services industry across the MENA region
Project Size USD 42,000,000 (KD 12,000,000)
Assignment Date & Duration 2006, 13 months
Main Area of Focus AlShall worked with promoters to envision the corporate concept and take the concept from idea to reality. Primary tasks included setting the strategy, identifying risks, conducting a feasibility study, acquiring the licenses, preparing the legal and financial structure, and placing 100% of the required equity capital.
Services Provided AlShall conducted a comprehensive feasibility study including all sub-components such as market research, industry trends, supply and demand quantification, competitors, customers, legal framework, identification and quantification of revenue streams, operating expenses, capital expenditures, capital structure, required rates of return and associated risks. Finally, AlShall raised the required equity capital through a private placement with both strategic and non strategic investors. At a second stage, AlShall successfully negotiated and acquired, on behalf of promoters and the company, four oil services companies that formed the nucleus of the new company.
Outcome The capital was successfully raised and the company established.