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ManagementAfrican Oil Conference - Algiers, April 4th, 2006African Oil Conference - Algiers, April 4th, 2006
African Oil Companies have a social African Oil Companies have a social responsibilityresponsibility
In real term, 2005 extra revenue nearly doubles 1974 and 1980 dollar surpluses
• To face, oil price volatility and declining reserves, windfalls have to be invested in: – oil production and refining capacity, – the world's biggest companies,
ManagementAfrican Oil Conference - Algiers, April 4th, 2006African Oil Conference - Algiers, April 4th, 2006
KUWAIT, a financial approachKUWAIT, a financial approach
KIO wants to be a first class asset management company with a complementary mission for developing excellence in the Kuwaiti private sector :
Contribution to Kuwaiti human capital education and training Active participation to investment growth in Kuwait Transparency in operations and application strong governance Development of a dynamic and motivated enterprise environment Constant research of improvement in its investments process.
Controlled by the Board of the Kuwait Investment Authority, mother company, chaired by Minister of Finances, with as members :
Oil Minister Central Bank Governor Finance Secretary Five other Kuwaiti experts on investments and finances of whom three are
ManagementAfrican Oil Conference - Algiers, April 4th, 2006African Oil Conference - Algiers, April 4th, 2006
Korea, an industrial approachKorea, an industrial approach
Electronics and Telecommunications Research Institute (ETRI) has been involved in more than 2.700 enterprise projects and more than 1.400 Technology transfers
ETRI spread over 264 companies mainly in Korea and abroad (Singapore …)
Today these companies represent more than 4.000 stable employees and annual revenues of WON 700 bln.
Some of these Companies are World leaders in domains like mobile phone, flat screens, or computers components.
With more than 3.500 international patents, ETRI is just behind American AT&T et IBM.
ManagementAfrican Oil Conference - Algiers, April 4th, 2006African Oil Conference - Algiers, April 4th, 2006
How to implement it?How to implement it?
– Build an investment platform with a 5 to 8 years time horizon,
– Hire an experienced professional team dedicated to complement actual investment with additional asset classes such as Private Equity, Alternative investment and Real estate, at home and abroad,
– Immerge in-house talents to be part of the team with purpose to train them to the best practice of Corporate finance & Asset management,
– Align the interest of team members with those of the structure to be sure to keep the bests,
– Transfer technologies from investment abroad to local market,
– Use the expertise of your platform team for your own M&A operations.
ManagementAfrican Oil Conference - Algiers, April 4th, 2006African Oil Conference - Algiers, April 4th, 2006
CD1 CD2 J1 CD1 CD2 J2CD1
How it could be structured?How it could be structured?
Operational Partner
Investment Committee
Oil Co partnership
Oil Company
DO1 DO2 DO3 DO4
F/O* B/O* IT*M/O*
A1
A2
A1
A2
A3
A4
Sec 1
Compt.
Oil co personal
*F/O Market Operations; M/O Post Market Operations; B/O Operations Management; IT Information Technologies; CD Department Managers; J Lawyer; A Deputy Manager; Sec Assistant;Compt Accountant
Transparency) Industrial Technologies from acquired companies
Access to unique opportunities in a vast & growing marketplace of privately held companies
Low correlation with other Asset classes Private Equity and Alternative Assets
Management as Risks mitigators
Long Term Value Creation
Professional Team & Regulatory Environment
Access to a large pool of professional resources Adapted Regulatory Environment
Financial Output over 10% High & Effective degree of influence & control over Investments Legitimate access to non-public information before investment-
decision Strong alignment of Interests between Investors & Management