O&G firm United Energy moves to buy Kuwait Energy for US$651m

The Hong Kong-listed company plans to enter the Middle East and North Africa markets.

Reuters reports that Hong Kong-listed upstream oil and gas company United Energy Group is planning to buy Kuwait Energy for up to US$651m as part of its plans to expand into Middle East and North Africa.

United Energy has agreed to buy US$491m in Kuwait Energy’s common shares and US$160m in convertible shares via a wholly-owned subsidiary, according to a regulatory filing.

The deal will transform United Energy into a medium-sized international independent oil and gas company with a diversified portfolio of assets, while further expanding its development potential, the filing added. The firm now holds the title as the fourth-biggest energy and power company listed on the Hong Kong bourse.

Kuwait Energy has an upstream focus and is involved in exploration, appraisal, development and production activities in several countries, including Iraq, Egypt, Yemen and Oman.

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