UAE-based energy firm RAK Petroleum said it has $400 million ready for acquisitions and is hunting for oil and gas assets in the Arab region and neighboring countries.
The company, owned by UAE and Saudi investors, could not spend that money when its deal for acquiring Gulf Keystone Petro-leum Limited in April failed to materialize.
"With that deal falling away, we have started looking at new ones. We are looking at two transactions at the moment," said Peter Sadler, RAK Petroleum’s new chief executive officer.
The company can potentially spend much more than $400 million if it found producing oil or gas fields, he told Gulf News in an interview.
"We can access more money through borrowings. We are looking for acquisitions between $300 million and $800 million over the next 12 months," said Sadler, who joined RAK from Indago Petroleum Limited, which was purchased by the UAE firm in March for $370 million.
Sadler said the company’s focus will remain on finding energy businesses.
"We have an upstream focus, predominantly gas if it is in the Arab world. Gas requires a bit more commercial and political knowledge of the region. With oil you can move a little bit further from your borders," Sadler said.
Iraq, Pakistan, Syria, Egypt, Algeria, Yemen and the Caspian region are among the areas of interest to RAK.