UK 06:35 Friday, 6 November 2026
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Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
When New World Oil & Gas (NEW) announced its surprise potential entry into the Kuwaiti oil sector, the market reaction was ecstatic. The company’s shares nearly doubled in price, as speculators salivated at the prospect of gaining access to at least some of the 3.5MMbopd, which Kuwait plans to produce by the end of 2015. Taken at face value this sounds like an incredible deal; except there is one small problem. I cannot find any reference, whatsoever, to New World’s apparent Kuwaiti partner in any of the published lists of approved contractors, authorised to tender for work in Kuwait’s oilfields.
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Comments
GheeBhee
Ben
Very restrained. Are you saving the rest for later? You know, the bits about the main man with the Sorbonne Doctorate gained while Chairman/CEO of the Cable Car at Port Sokhano in Egypt. The only Doctor of Social Politics ever to go from anywhere to run a fish farm on Lake Nasser. “Ambassador to Serbia” for the IOEDF (well dodgy), “Secretary General” of an NGO dedicated to Democracy in Kuwait (no really!).
Do you think that anyone admitting they are even contemplating doing financial dealings with this man, Alfahaid, is stupidly criminal or just criminally stupid?
GB
Philip
It sounded extremely dodgy when I looked into it and why I wouldn’t touch NEW at this moment .
GheeBhee
KOC recognises Drilling of Shallow Oil/Water Wells #23 (25 per-qualifiers), Medium Depth Onshore Drilling Rig Services #27 (23 per-qualifiers)
Deep Drilling and Rig Services #43 (only 9 per-qualifiers). No Al Maram to be seen anywhere. I can only think that the paperwork was lost in the post six years ago and that NEW have been selected for their water locating skills as demonstrated in Belize (#23 it is then). Or Fishing Services #53 perhaps?
wildrides
Yeah , I heard they are going to get right on with the due diligence task , as soon as they have cured the squeak on left front wheel of Bill’s Walmart trolley . And of course the new loan for the directors to buy more shares again with. Rumors that Mr
Keller is to be granted a “Walmart Trolly Dash” in exchange for an undisclosed number of New warrants are alas just rumors at this stage, although with New anything is possible …… side ways drill anyone ? Mining Maven comedy video interview ?
Ben Turney
@GheeBhee
When I went through the KOC’s list of approved contractors, work item #23 made me laugh too.
We are still awaiting a response from NEW. The questions posed are easy enough to answer. On what basis do they claim that through Al-Maraam they will be able to tender for work on Kuwaiti oil fields, though the KOC?
GheeBhee
Ben.
Thank you for the response. Are you aware that the description of the process for handing out tenders (“What they have six companies that they tender out to well-bore assignments to manage and maintain their producing volumes, as allocated by OPEC”) is remarkably similar to the way that the fish take on Lake Nasser was divided up when Dr Alfahaid was running Grand Lake Company for Fish. “Thus, everyday at the harbour, only one private trader (following a rotating system amongst the six
traders who were officially
associated to each harbour)
is entitled to buy a share of
the cooperative’s landings, alongside with the investment companies and
the state‐owned companies. The other five
fish traders wait for their turn later in the week”
The parallels are spooky!
GheeBhee
So what are the parallels? Let’s see.
Lake Nasser is divided into five zones with exploitation rights granted to specific companies and cooperatives. One of these is Grand Lake.
“The ruler of Kuwait has, for lack of a better way to say it, divvied up Kuwait into about six sectors. One of those sectors was awarded to the Al-Maram Group. “
Six traders allocated slots, without much transparency, on Lake Nasser.
Six companies allocated slots without much transparency, in Kuwait.
Turn and turn about for the fish from Lake Nasser. (see above).
Turn and turn about for oil from Kuwait. (“it gets passed from company to company, and eventually we’ll get our shot”).
Dr Alfahaid was involved with fishing on Lake Nasser with Grand Lake Co for Fish.
Dr Alfahaid is involved with fishing for oil in Kuwait with Al Maram.
Now, either there is a common approach to contracting between Egypt and Kuwait or someone who experienced the Lake Nasser system has adapted it and sold it as the system in use in Kuwait.
Due diligence will clear this one up I’m sure.
GheeBhee
In the absence of any view from NEW what about this for a possible explanation?
Kuwait is a socialist country with a benevolent leadership. Natural resources are nationalised. The Kuwait Oil Company (KOC) has a total monopoly but…
Big contracts are opened for international and national tender.
To speed things up there is a per-qualification process for any companies wishing to tender. This is all open and transparent on the KOC etender website.
Little everyday jobs are not put out to tender but are done by the in-house resources of KOC. On occasions KOC hands out some of these tasks as contracts on a non-competitive basis to one of six worthy local companies. These six companies are each sponsored by a junior member of the ruling house (on a not for profit basis). The infrequency and relatively small size of the contracts makes one of these hidden companies worth less than Eur2m (or is it Eur10m now?)
So challenged are they that they need outside help. Step forward NEW.
As this system is not well publicised and may be confidential, NEW are having difficulty articulating this in an acceptable manner.
Only speculating to pass the time and no offence or defamation intended.
Ben Turney
@ GheeBhee – re. your comment at 0847 – another interesting bit of speculation from you.
If this is the case, and given that you have articulated the idea rather succinctly, why couldn’t NEW do the same?
Of course, if this is correct it begs the question what use “not for profit” contracts are to a company listed on AIM?
However, Mr Kelleher was quite adamant in the Proactive interview that New + its Kuwaiti partner would tender for contracts. This doesn’t fit with your possible explanation of being handed out menial tasks on a semi-official basis.
But then I suppose that being odd-job man for the Kuwaiti Oil Company doesn’t really have the same ring to it as access to billion barrel oil fields, does it?
wildrides
I hear there is a very big Walmart in Kuwait with supersize trolleys .
GheeBhee
Ben,
Thank you. I’m sure you recognise that I was taking the Lake Nasser Fishing situation and applying it to Kuwait. I didn’t say I believed it. So with that in mind….
Firstly, let me better explain the not for profit angle. Only the involvement of the royals is on a not for profit basis. It would have to be “not for profit” for them because there’s something about not paying facilitation fees directly or indirectly to Government officials or their agents in Jersey law. For the rest it’s “fill your boots” (or fill your tank and export it) time.
Secondly, it might be that the deal is cloaked in non-disclosure clauses just in case the three princes that don’t have their protege’s exporting for cash find out. Ruling royals can be very sensitive to slights like that you know. Mr K may have said too much already, which means that General Manager retirement job at Al Maram probably isn’t going to work out for him after all.
Thirdly, there’s tendering and there’s tendering. Ever worked for an employer who paid your removal fees but wanted three quotes? Anyway, Mr K may not have been sticking to his brief when put under Paxman- like pressure by Ms Lowther,
Finally, I agree that the spin enhances the apparent value of this deal. Too much perhaps.
We’ll just have to wait a bit longer to find out I suppose. Meanwhile perhaps some reflection on the need for Shareholder approval for the significantly revised deal might be appropriate?
Ben Turney
One other point I am interested in, is Mr Kelleher’s claim in the Proactive Interview that NEW (through its Kuwaiti Partner) would be “one of three companies eligible to export oil from Kuwait”. When the company responds about Al-Maraam, it will be good to hear what it has to say about that.
Re. a new shareholder vote – I really don’t think it matters GheeBhee.
Shareholder rights on AIM are largely academic. Even if someone possesses the talent to herd cats, they then need to navigate the minefield of corporate law.
In this instance, with NEW registered in Jersey, I don’t think a new shareholder vote would be anything other than a formality (if one is even required)
GheeBhee
Ben.
I’m sure you have better things to do than read my responses to everything you write but if you don’t……
The point you make about the oil export rights is of course one of the major flaws in my imaginary scenario. How could a company picking up below the radar contracts expect to be given the opportunity to export the stuff? If there was “influence” at play perhaps? See my second point above. The sort of influence that someone might claim to have if they worked with a royal on an NGO project perhaps?
Regarding a shareholder vote, you make a good point. It might be fun to try with this one though. Particularly if your family is from Jersey, like mine is.
GheeBhee
Before inviting the Sheriff of AIM to raise a posse on this one I thought it worth looking at what NEW said on Shareholder approval.
21 Aug RNS “the Company will be subject to the City Code, from 30 September 2013”.
27 Sep RNS “The Company is working closely with the subscribers to complete the subscription. However, as the Company will from Monday need to comply with the Takeover Code, this may require a further vote of independent shareholders.”
3 Oct RNS “the transfer of funds required to complete the subscription for new shares in the Company by Niel Petroleum S.A. (“Niel” or the “Subscriber”) has not yet occurred.”
8 May RNS “Further to the approval of Shareholders at the Annual General Meeting on 12 September 2013, New World has continued to work with the Subscriber, Niel Petroleum SA (‘Niel’), to complete the subscription on the agreed terms.”, “the transaction is subject to completion including ……compliance with regulatory requirements” and “The Framework Agreement provides that upon the conclusion of a share purchase agreement, A SHAREHOLDERS’ AGREEMENT and a put option agreement with Dr Alfahaid, New World shall pay EUR1 million in consideration for an immediate transfer of 49% of the shares in Al Maram”
Still all to play for then. NOMAD, get your rule book out I say.
GheeBhee
Ben,
I was reflecting on how the Board of Directors might have been convinced by Dr Alfahaid. Desperation helps of course. Encouragement from Niel too. (By the way, have the French Police released M Charki’s father in law yet?)
What about a positive response from someone in KOC? Now here’s a thing. Dr Alfahaid’s Deputy in the totally discredited scam that is the IOEDF is Khaled Almulla. There is, by total coincidence I’m sure, a Khaled Almulla who claims to be the Team Leader Exploration Operations at Kuwait Oil, Company. It would be quite easy for someone at NEW to check the headed notepaper and the signature block on the letters from KOC, I would have thought.
If they haven’t by tomorrow then it will just about time to round up the townsfolk and mount up.
GB