Hayaat Group, a private investment company based in Abu Dhabi, has acquired 10 per cent stake in Swala Energy for US$3.3mn
Autralian explorer Swala Energy’s assets are located in the East African Rift System, where four billion barrels of oil have already been discovered.
The company is currently valued at US$46mn, but analysts estimate that, based on the geological data obtained on its licenses, Swala Energy could be worth over US$150mn.
While UAE group had already invested in oil-related infrastructure projects in Mozambique, the acquisition is its first direct investment in East African oil exploration.
Hayaat Group has interests in a range of sectors including E&P, power, natural resources support services and trading.
Mohammed Ikhlaq, executive director of Hayaat Group, said, “We are excited about our investment in Swala Energy. It is a well-run and well-financed business with an extremely attractive portfolio of exploration assets. The licenses are located in some of the most prospective land we have ever encountered and we are greatly encouraged by the high rate of exploration success already seen in the region. It is considerably higher than the average across the industry as a whole, lending weight to our belief in East Africa as a place to invest.”
