The Directors of Gulfsands Petroleum plc establishes an important strategic partnership with Cham Holding, which is well recognized as one of Syria's most important business groups.
The strategic partnership is to be established in the form of a venture company owned 65% by Cham Holding and 35% by Gulfsands (the "Strategic Partnership") with each party responsible for only their proportionate share of funding. The intention of the Strategic Partnership will be to pursue the acquisition of several high-value energy projects in Syria and potentially Iraq (the "Projects"). The directors of Gulfsands and Cham Holding have been working together for some time in pursuing the acquisition of interests in the Projects and matters have now reached a stage where it was considered appropriate to formally establish the Strategic Partnership in order to be in a position to participate in any potential Project through the Strategic Partnership.
In addition to its minority position in the Strategic Partnership, it is the intention of the partners that Gulfsands should act as the Operator under any Government Contract acquired by the Strategic Partnership. Gulfsands will also be entitled to acquire additional direct interests in the Projects alongside any participating interests acquired by the Strategic Partnership.
Cham Holding, a private joint stock company, was established in 2006 and then completed a US$360 million equity raising for investment in a range of sectors including the energy sector, power generation, real estate (including hotels and leisure), finance, health and education. Cham's significant shareholders include the Al Mashreq Investment Fund, which recently became a substantial shareholder in Gulfsands, and a number of prominent Syrian businessmen and corporations.
Cham Holding, currently the largest private Syrian consortium, is chaired by Mr. Nabil Kuzbari and vice chaired by Mr. Rami Makhlouf. Cham Holding is currently developing projects that exceed in value more than one billion U.S. Dollars, including a wide variety of real estate and hospitality projects, some of which are being developed within joint ventures with well known international companies.
