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InterviewsMarch 26, 2010
Kuwait Energy, Emerging Oil Company in Kuwait
Sara Akbar. CEO of Kuwait Energy
- Written by Ben Novak
- Published: March 26, 2010
Interview with Sara Akbar.
The main drivers behind greater oil demand will likely be countries in Asia (especially China and India), as well as Latin America and the Middle East. Those economies are set to grow significantly in 2010. As the market begins to recover following the price volatility of 2008-2009 what are you expectations for future oil prices and what are your expectations for the global economy?
How do you view the future involvement of international oil companies in projects in Kuwait?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: I believe there is a huge need for them to be implemented into these projects especially in difficult fields that we have not developed yet. One of the main constraints is the availability of skilled man power in order to accomplish everything that needs to be done. It’s not just numbers, it’s numbers and skill and expertise levels combined in order to achieve everything they want. The more mature the fields get the more skill is required to manage these fields.
What is your role in this picture?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: We created this company because we believe a time will come when they have to involve international companies to assist in the development of some fields. For example, recently an extended technical services agreement was signed with shell to help in the development of gas fields in northern Kuwait. This is one step in moving towards seriously involving international companies in developing the fields. We wanted to create and indigenous company that could come into Kuwait with the ability and confidence to tackle different fields and demonstrate our abilities. Over the last forty years we have been trying to create a company with an excellent track record, skilled people, and applicable technology to meet the requirements of our own backyard: Iraq, Kuwait, Saudi Arabia, ect. We know we will need time to develop business and acquire more projects but we have the patience to do this.
Kuwait Energy is on track to go public and double its oil production in the field in the next year. What affect has the global economic downturn has on your operations and are you going to reevaluate some of the plans you envisioned last year?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: Being a small, private company you always are changing your plans, being mobile, and being flexible. Agility is our strength and we will always change our plans in order to best meet the interests of our shareholders and the company. As for the crisis, yes, it affected us because our ability to respond was limited. We managed to get debt when it was hard to get financing during the peak of the crisis and this was an accomplishment for us. Our plans were affected a little bit by the crisis and the targets we are aiming for will shift in timing but remain the same depending on the ability to raise funds.
Is finding financing still a major challenge for you, what are your other major challenges?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: The world has changed since 2007 and now to get access to funds you need to be more diligent and demonstrate that you have programs that require these funds. Credibility is also a very important factor and we have demonstrated that in the past.
What are you plans to go public and what kind of investors are you targeting?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: We are planning to go public this year. We have approval from the shareholders to do so and we are on track to do so hopefully in the second quarter of this year. We would like long term investors who understand the business and perhaps more institutional investors. We would like investors from the region but currently 30% of our investors are from the US and Europe and we welcome more investors from there to. This is a unique opportunity for any kind of investor to have access to a Middle Eastern indigenous company that operates in the region with future growth plans and targets in the region. There are not many independent oil and gas companies in the world so I think this presents a great opportunity.
You operations span not only in Kuwait but also in the Ukraine, what is your assessment of your advancement and expansion strategy?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: We invest in the Ukraine, Russia, Latvia, Egypt, Yemen, Oman, Pakistan, and hopefully Iraq and Kuwait. We have a lot of operations and we always try to diversify our portfolio in order to maximize our returns and minimize our risks. Our investments in Eurasia are due to access to low value opportunities when we were trying to build our company and we have managed to enhance the potential of these assets. We are currently investing again in Eurasia.
What are your expectations for Kuwait Energy in five years, what is your vision for the company?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: In five years I think we would like to create the largest and strongest, independent oil and gas company in the region with multiple big assets in the GCC region itself. We hope to see a Middle Eastern company with many Middle Eastern projects.
As one of the companies implicated in the production and drilling of fossil fuels you have a responsibility towards the environment. How do you address your corporate social responsibilities?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: We have IFC financing and we get that because of how we handle our social responsibility and contribute to the societies where we operate. We invest in countries where we believe we can bring value; not only to the government but to the people as well. We only invest where we can align our interests with the peoples’ interests and the government’s interests in order to generate value for all three parties. We take this very seriously and we also ensure we adhere to the highest of environmental standards. In some areas where we operate we generate most of what people live off of with job opportunities and training too.
You received an award for being the leader in energy and women in leadership. How do you see the role of women in Kuwaiti society?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: Kuwaiti women are very strong and have always had a huge role to play in every aspect of life except for politics. Up until four or five years ago we had no role in politics at all but we are starting to get into that as well so we have covered many sectors. There are issues, however, regarding women in key positions. The total percentage of women in the workforce is 28-30% but you don’t see these figure in leadership positions- that figure is more like 3%. There is a huge gap to be filled to allow women to demonstrate their capacity for leadership in key positions and I think this will be a new front that we will fight to get women to where they deserve to be.
What is your position on global warming and Co2 emissions?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: I wish there was a true, unbiased study to tell us about the facts regarding the issue. If something can demonstrate that our world is really prone to destruction following Co2 emissions then it is a no-brainer that we should reduce emissions. I think people are really confused about the facts of the situation. The most recent in Copenhagen shows us that we are missing an unbiased technical review to tell us the true facts regarding the situation.
What is your final message that you would like to address to our audience about Kuwait and Kuwait Energy?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: There is a lot to be done in the field of energy, especially for companies that can add value in every country that they work in especially regarding ethics, business relations, and social responsibility. I think Kuwait Energy has been the ideal company to demonstrate how to do business and be socially responsible. If other companies can realize this it will be the bust vehicle for any organization.
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: There is no one on earth who can predict oil prices. However, if we look at the fundamentals of our business, this is a finite resource, we cannot generate it we can only produce and consume oil. One day it will run out but we are not sure when that will be. People talk about the peak of oil and say did we, as a world, produce peak oil from every reserve in the world? The reality is that we have not peaked in oil production. There is a conventional and unconventional type of peak oil (like oil shells that are trapped in reservoirs) and unconventional oil resources still exist in large untapped quantities. I think conventional oil will peak very soon because over the last one hundred years we have not been able to replace everything that we have consumed and we have not been able to discover more resources to cover everything that we have used and will use in the future. However, there is a tremendous amount of oil to be produce from unconventional oil sources and this will definitely close the gap. Last year a lot of heavy oil projects were shelved because of cost and oil price but this was a good time for acquisition and a lot of companies took advantage of this. Companies that are long time players in the market will depend on unconventional oils to supplement the needs for energy in the world. In concern to the world economy we have seen some changes. In 2008 people were very negative about the recession but I always believed it would be short lived because it is a different world. I think because we are able to do things faster in this day and age it make this recession much different and easy to navigate out of.
How do you view the future involvement of international oil companies in projects in Kuwait?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: I believe there is a huge need for them to be implemented into these projects especially in difficult fields that we have not developed yet. One of the main constraints is the availability of skilled man power in order to accomplish everything that needs to be done. It’s not just numbers, it’s numbers and skill and expertise levels combined in order to achieve everything they want. The more mature the fields get the more skill is required to manage these fields.
What is your role in this picture?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: We created this company because we believe a time will come when they have to involve international companies to assist in the development of some fields. For example, recently an extended technical services agreement was signed with shell to help in the development of gas fields in northern Kuwait. This is one step in moving towards seriously involving international companies in developing the fields. We wanted to create and indigenous company that could come into Kuwait with the ability and confidence to tackle different fields and demonstrate our abilities. Over the last forty years we have been trying to create a company with an excellent track record, skilled people, and applicable technology to meet the requirements of our own backyard: Iraq, Kuwait, Saudi Arabia, ect. We know we will need time to develop business and acquire more projects but we have the patience to do this.
Kuwait Energy is on track to go public and double its oil production in the field in the next year. What affect has the global economic downturn has on your operations and are you going to reevaluate some of the plans you envisioned last year?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: Being a small, private company you always are changing your plans, being mobile, and being flexible. Agility is our strength and we will always change our plans in order to best meet the interests of our shareholders and the company. As for the crisis, yes, it affected us because our ability to respond was limited. We managed to get debt when it was hard to get financing during the peak of the crisis and this was an accomplishment for us. Our plans were affected a little bit by the crisis and the targets we are aiming for will shift in timing but remain the same depending on the ability to raise funds.
Is finding financing still a major challenge for you, what are your other major challenges?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: The world has changed since 2007 and now to get access to funds you need to be more diligent and demonstrate that you have programs that require these funds. Credibility is also a very important factor and we have demonstrated that in the past.
What are you plans to go public and what kind of investors are you targeting?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: We are planning to go public this year. We have approval from the shareholders to do so and we are on track to do so hopefully in the second quarter of this year. We would like long term investors who understand the business and perhaps more institutional investors. We would like investors from the region but currently 30% of our investors are from the US and Europe and we welcome more investors from there to. This is a unique opportunity for any kind of investor to have access to a Middle Eastern indigenous company that operates in the region with future growth plans and targets in the region. There are not many independent oil and gas companies in the world so I think this presents a great opportunity.
You operations span not only in Kuwait but also in the Ukraine, what is your assessment of your advancement and expansion strategy?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: We invest in the Ukraine, Russia, Latvia, Egypt, Yemen, Oman, Pakistan, and hopefully Iraq and Kuwait. We have a lot of operations and we always try to diversify our portfolio in order to maximize our returns and minimize our risks. Our investments in Eurasia are due to access to low value opportunities when we were trying to build our company and we have managed to enhance the potential of these assets. We are currently investing again in Eurasia.
What are your expectations for Kuwait Energy in five years, what is your vision for the company?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: In five years I think we would like to create the largest and strongest, independent oil and gas company in the region with multiple big assets in the GCC region itself. We hope to see a Middle Eastern company with many Middle Eastern projects.
As one of the companies implicated in the production and drilling of fossil fuels you have a responsibility towards the environment. How do you address your corporate social responsibilities?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: We have IFC financing and we get that because of how we handle our social responsibility and contribute to the societies where we operate. We invest in countries where we believe we can bring value; not only to the government but to the people as well. We only invest where we can align our interests with the peoples’ interests and the government’s interests in order to generate value for all three parties. We take this very seriously and we also ensure we adhere to the highest of environmental standards. In some areas where we operate we generate most of what people live off of with job opportunities and training too.
You received an award for being the leader in energy and women in leadership. How do you see the role of women in Kuwaiti society?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: Kuwaiti women are very strong and have always had a huge role to play in every aspect of life except for politics. Up until four or five years ago we had no role in politics at all but we are starting to get into that as well so we have covered many sectors. There are issues, however, regarding women in key positions. The total percentage of women in the workforce is 28-30% but you don’t see these figure in leadership positions- that figure is more like 3%. There is a huge gap to be filled to allow women to demonstrate their capacity for leadership in key positions and I think this will be a new front that we will fight to get women to where they deserve to be.
What is your position on global warming and Co2 emissions?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: I wish there was a true, unbiased study to tell us about the facts regarding the issue. If something can demonstrate that our world is really prone to destruction following Co2 emissions then it is a no-brainer that we should reduce emissions. I think people are really confused about the facts of the situation. The most recent in Copenhagen shows us that we are missing an unbiased technical review to tell us the true facts regarding the situation.
What is your final message that you would like to address to our audience about Kuwait and Kuwait Energy?
Kuwait Energy, Kuwait emerging oil company, Vice Chairman / CEO, Sara Akbar: There is a lot to be done in the field of energy, especially for companies that can add value in every country that they work in especially regarding ethics, business relations, and social responsibility. I think Kuwait Energy has been the ideal company to demonstrate how to do business and be socially responsible. If other companies can realize this it will be the bust vehicle for any organization.