MANAMA: Investing in oil royalties in the US and South America can yield a double-digit return with monthly cash flow, an expert has said.
Licorne Energy founder and president Irina Duismbekova told participants during a presentation at the Capital Club Bahrain last Thursday that her company has optimised the system of oil royalties in many existing producing oil wells and the opportunity was available to investors in the GCC.
Based in Houston, Texas, Licorne Energy specialises in oil asset investments by purchasing royalties in oil and gas within the US, energy investments and projects, new tech
nologies and petroleum commodities trading.
“We invest and provide our services to individuals and corporate clients wanting to diversify their investment portfolio,
to increase their interest rate income and generate monthly cash flow,” she told the audience that included family business leaders, bankers and fund managers.
The royalty is a portion of the gross value of any oil or gas produced from the lease that is paid to the mineral owner.
It is not a portion of profits, for it is paid without deducting costs of drilling, completing, or operating the well.
“We are in a period where investors prefer to rely on tangible investments and demand – to be able to ‘touch’ what they are paying for,” added Ms Duisimbekova.
“We are offering instruments which you can re-sell, mortgage, exchange and so on with something physical in hand, instead of instruments based on outcomes in the future like exchange traded funds and foreign exchange and futures.”
The presentation was organised by Licorne in partnership with Flamingo Oil International, which is also an oil and gas production and investment firm from Houston.
Flamingo’s founder and president Omar Minhaj, who also spoke during the presentation, said their oil royalties were a diversified product based on physical oil production and were supported by local banks in Texas, international banks and investment funds.
“We tend to operate conventional fields as well as shale but remain focused on a traditional and safe production process as the purpose is to constantly generate an optimised flow of barrels to secure monthly royalty return to our investors,” he said.
Also present were US Ambassador William Roebuck and Sri Lankan Ambassador Dr Saj Mendis.
Licorne Energy is also present in Bahrain with an office in Seef.
avinash@gdn.com.bh
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