TAB Energy awarded major Shell contract for oil exploration in Libya

TAB Energy – a subsidiary of Bahrain-based investment firm Capital Management House (CMH) and Libya-focused private equity group Tuareg Capital – has won a second major contract from global energy giant Shell.

In June 2007, CMH and Tuareg Capital launched the Libya Fund to capture the investment opportunities offered across a wide range of Libyan sectors, including energy services. The strategy of the energy services venture is to create a leading Libyan oilfield services group, offering a pool of high-quality drilling assets that can be deployed anywhere in the region and complementary service lines to its customers.

The latest contract win from Shell was secured by Etelaf Oil Services, the oilfield services specialist subsidiary of TAB Energy, the Libya Fund's first investment in that country. This follows Etelaf's first contract granted by Woodside Energy of Australia in March 2007.

Drilling under the Woodside contract started last year and resulted in a wildcat exploration well discovery in western Libya, Woodside's fourth discovery since it won its licence.

The Shell contract will see Etelaf dedicating one of its two state-of-the-art drilling rigs to Shell's exploration needs until at least 2011.

Etelaf's General Manager, Tawfiq Zentani, said: "This second win from Shell demonstrates our ability to meet the highest operating standards in oilfield services and win contracts from major energy corporations."

Tuareg Capital, which is the manager of the Libya Fund, has leveraged its deep knowledge of the Libyan market to identify value enhancing opportunities in various sectors, especially the oil services industry.

Adel Saudi, Chairman and CEO of Tuareg Capital, said: "Our partnership with CMH shows how value can be created through cross-border investments in Mena. CMH has been instrumental in securing both the equity of the fund and debt financing for the rig from leading financial institutions in the GCC."

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