Sovereign Wealth Fund Institute

Cristina Kirchner

According to the AFP, “Argentine President Cristina Kirchner on Sunday oversaw the signing in Kuwait of seven accords to boost cooperation with the oil-rich emirate at the start of a two-day visit.

Kirchner, on her first trip to the Gulf state, was greeted at the airport by Emir Sheikh Sabah al-Ahmad al-Sabah and other leaders, the official KUNA news agency said.  After the two leaders held official talks, the governments of the two countries signed the agreements on boosting cooperation in the fields of investments, agriculture and sports.

The accords cover economic and technical cooperation, a trade deal, two separate accords between Argentina and Kuwait Investment Authority, or the sovereign wealth fund, and Kuwait Fund for Arab Economic Development.

They also signed accords for cooperation in the fields of health, agriculture and sports.”

Read more: AFP

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According to the Kuwait News Agency, “Kuwait and Brazil agreed on establishment of a joint investment company, said Board Member of Kuwait Chamber of Commerce and Industry (KCCI) Sayer Al-Sayer here.

Al-Sayer said late on Saturday, after a banquet held by Brazil’s President in the honor of His Highness the Prime Minister of Kuwait Sheikh Nasser Al-Mohammad Al-Sabah, that the two countries agreed on preparing “an initial study for the establishment of the company.” He said the aim of the company will be to boost economic relations between Kuwait and Brazil, adding that it would also have positive effect on trade exchange between Kuwait and Brazil. Brazil is rich in oil, agricultural resources and livestock, he pointed out, noting that the country is due to host several crucial international events, namely international Olympic games and the World Soccer Cup — events that will contribute to reviving the national economy and impact in particular on the private sector, he noted.

The two countries will form a joint committee to prepare studies on the issue, he said, alluding to the accord. As part of His Highness the Prime Minister’s tour in Latin America, th KCCI is seeking to stress economic ties with the regional counties. Al-Sayer is heading KCCI’s delegation accompanying His Highness the Prime Minister.”

Read more: KUNA Press Release

BP is not a new investment for SWFs, especially Middle Eastern sovereign wealth funds.  Already the Kuwait Investment Authority is a large holder of the security, including many others.  In the past, numerous SWFs have taken small equity positions in BP.  Now with the possibility of a takeover from oil rivals and the need to increase their capital base, SWFs may come to the rescue at the right price and structure.  BP also has the option of selling assets in its oil producing portfolio as well.

According to the AP, “BP may be looking to sovereign wealth funds in the oil-rich Middle East to fend off takeover bids amid mounting costs from the Gulf of Mexico oil leak disaster, according to reports published Sunday.

The National, an Emirati newspaper, cited unnamed “informed sources” in the region saying that Mideast financial institutions have submitted proposals to BP advisers and are waiting for a response. Among the options being considered are the acquisition of key assets or a direct cash injection to help strengthen the oil giant’s balance sheet, according to the English-language paper.

The paper quoted a person it called an informed source as saying that “BP knows there is potential support from the Middle East.”

The National is owned by the government of Abu Dhabi, one of seven emirates that make up the United Arab Emirates federation. The sheikdom hosts the country’s capital and controls nearly all the OPEC member state’s oil reserves.

BP spokeswoman Sheila Williams in London declined to say whether the company had been approached by investors from the region.

“We don’t comment on financial issues,” she said.”

Source: AP

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According to BI-ME, “Kuwait and France on Thursday signed an initial agreement on nuclear cooperation that includes exchanging expertise on the field, the official news agency KUNA reported. The agreement encourages the peaceful use of atomic energy to bring in vital energy resources such as electricity, the report said, without providing any details of the cooperation. Earlier on Wednesday KUNA had reported that Kuwait may be interested in acquiring a stake in France’s nuclear giant Areva, citing unidentified industry sources.

‘Areva says it needs the capital injection to finance the expected rapid development in the nuclear market,’ Kuna said.

The news agency added that Anne Lauvergeon, the CEO of Areva, did not give details on ongoing contacts with potential investors, ‘but industry sources have said that Kuwait could be interested in taking a stake in Areva’.

Lauvergeon reportedly said Wednesday that the talks taking place with potential partners are at a government-to-government level and that a number of partners were involved. In March, Deputy Prime Minister and Minister of Defence Sheikh Jaber Moubarak Al-Hamad Al-Sabah said Kuwait will cooperate with France in the field of nuclear power, hinting it could take a stake in the nuclear group Areva. The Financial Times also said in March that the French government was considering opening the share capital of Areva to Middle Eastern investment funds with a view to reinforcing its political influence and the nuclear group’s prospects in the region. Exploratory talks had been held about the possibility of sovereign wealth funds buying minority stakes of 1%-5% in Areva, which is majority owned by the French government, the FT said, citing people close to the matter.”

read more: Business Intelligence Middle East

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