Dubai’s Kampac Oil plans firm in Africa
Dubai-based Kampac Oil Middle East following great success in acquiring blocks in Africa, plans to float a company to manage its acquisitions. The company is also in the process of major expansions in the Middle East in both upstream and downstream sectors.
Dubai-based Kampac Oil Middle East plans to set up a firm to manage oil & gas exploration concessions in Senegal that will be offered to the public next year, said chairman Charles Ampofo.
Half of the two assets — an offshore and an onshore block in Senegal — will be offered through private placement first and then a public offering, he said.
“We are considering an initial public offering early next year,” Ampofo said, adding that the listings would be on the New York Stock Exchange and Dubai International Financial Exchange.
Kampac, whose activities include oil & gas exploration, building oil storage facilities, and trading in crude oil, has a strong presence in West African states.
The two blocks that will be offered next year are St. Louis and Louga blocks. The St. Louis block is estimated to hold large quantities of gas reserves, estimated between three and six trillion cubic feet, says Ajit Nair, executive vice president of Kampac. The block is also estimated to hold up to 400 million barrels of oil.
Speaking to Oil&Gas Middle East, Nair said, “Gas is the future, and when given both oil & gas, we would rather go for gas, as it is a cheaper and a more economical commodity to deal with.”
With the gas produced in St. Louis, Kampac plans to set up a power plant that will feed the national power grid that connects Senegal to Mali and Mauritania. “We at Kampac want to give something back to Africa,” said Nair.
In keeping with that philosophy, the company is also committed to building a 100,000 barrels per day (bpd) refinery in Ghana, subject to reaching minimum production at the blocks.
Kampac will also acquire more blocks in Congo, shortly. The company is also said to be in the process of taking over 32 petrol stations in Congo.
The firm recently concluded a US $70 million deal for a floating oil storage facility in Ghana.
The unit is a large oil facility, which is part of the deregulation process for sale of fuel in the country. About future plans, Nair said Kampac was holding talks with various companies about investment in gas tankers and possibly even LNG carriers.
In the Middle East, the company is in the process of negotiating various upstream and downstream deals, which Nair believes “are too early to talk about.” Nair also said the company was open to the idea of floating an IPO simultaneously on international stock exchanges following Dana’s stunning success.