Bahrain’s Minister of Oil, His Excellency Shaikh Mohammed bin Khalifa Al Khalifa, today announced the launch of the Bahrain Energy Fund. The fund will be the first such fund in the GCC and will be unique in providing institutional investors with access to local energy assets.
The announcement was made at Gateway Gulf, which is being held under the patronage of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and Chairman of the Bahrain Economic Development Board (EDB). Gateway Gulf brings together over five hundred global investors and business leaders to explore ways of unlocking the opportunities being created by the economic transformation in the GCC. The event provides a direct route into accessing the GCC market by showcasing major investment-ready projects worth USD $18billion, with projects in the planning phase driving up the value of the project pipeline to USD $26billion. The event also offers an opportunity to match funding with large-scale infrastructure projects in Bahrain.
The Bahrain energy Fund will seek to raise a total of $1billion and receive an initial seed capital from entities in Bahrain, including Nogaholding, Osool and SICO and will be open to investors in Bahrain, the GCC and internationally.
The Bahrain Energy Fund will invest in a range of energy projects in Bahrain across the downstream, mid-stream and upstream sectors, which includes developments in the newly discovered oil and gas resource. Some of the projects are at an advanced stage of development enabling a rapid deployment of capital.
As well as providing investors with access to a highly attractive asset class, the Fund will also introduce private capital to help fund major infrastructure in Bahrain and enhance development of vital energy projects. It will also benefit from Bahrain’s status as a regional financial hub in developing the Fund’s structure and attracting investment.
Commenting on the launch of the Fund, The Minister of Oil, His Excellency Shaikh Mohamed bin Khalifa Al Khalifa, said: “We are delighted to announce the launch of the Bahrain Energy Fund – a real innovation for the region. For the first time, institutional investors will have the opportunity to gain access to energy assets.
“These are exciting opportunities at an advanced stage of development, giving us the opportunity to deploy capital rapidly and generate returns for investors, while also accelerating the development of vital infrastructure projects in Bahrain.”
Bahrain recently announced the discovery of a new tight oil and deep gas resource in the Khaleej Al Bahrain Basin, located off the west coast of the Kingdom. The find represents the largest discovery of oil in the Kingdom since 1932, when extraction started on Bahrain’s first oil well within the Bahrain Oil Field.