Energy Holdings International Inc. and Rasan Energy Holding Co. signed a joint venture (JV) agreement on Oct. 15 in Dubai, UAE, whereby Rasan will provide US$60 million equity investment funds for the acquisition of proven oil and gas properties in the US and Canada. The JV will be owned 50/50 between Energy Holdings International and Rasan Energy Holding and will be jointly owned and operated via a new holding company "Energy Vest 1."
Energy Holdings International has been active in the development of independent power plant (IPP) assets on a power purchase agreement (PPA) basis with utilities owned by local MENA governments in both solar and combined cycle power plants. Energy Holdings International utilizes GE Technology for heavy fuel oil (HFO) and gas fuel while utilizing first solar technology for solar farms whereby giving a long-term value to the Energy Holdings International shareholders.
Energy Holdings International has long had the intention of acquiring oil and gas properties in the US, and with the technological advancements that has led to the increased production; the investment risk has been reduced significantly. The shale production in the US has increased over the past few years and will continue, stated Jalal Alghani, vice chairman.
The joint venture between Energy Holdings International and Rasan is a stepping stone into the acquisition and investment in the energy market in the US and Canada with the initial targeted asset value exceeding US$120 million. Rasan has agreed to provide additional investment capital in 2015 for larger acquisitions. The JV with Rasan Energy has full support from the board of directors of Energy Holdings International.