Arab Group International

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Arab Group International (AGI) is based in Riyadh and headed by Prince Sultan bin Saud bin Abdullah Al Saud (Ibn Saud Ibn Abdullah Al Saud). [1]

"It is also important to note that the good relations between Sudan and Saudi Arabia are cemented by widespread investments in the Sudanese oil industry by the Arab Group International, a company chaired by Prince Sultan bin Saud. Saudi Arabia’s investments in Sudan became more prominent, particularly since the 1970s, following the 1973 Organization of Petroleum Exporting Countries (OPEC) oil price increases. The oil price increases provided OPEC, and particularly Saudi Arabia, with huge financial surpluses." [2]


Arakis Energy Corporation

On July 6, 1995, Arakis Energy Corporation issued a news release "announcing that, in order to raise the necessary financing to develop [its] oil concessions in Sudan, Arakis had entered into a contract with a group known as Arab Group International (AGI) and its associates for the purpose of financing Arakis’ Sudan petroleum project which was owned through Arakis’ wholly owned subsidiary" State Petroleum Corporation. "[AGI subsequently was referred to in Arakis news releases as Arab Group International For Investment and Acquisition Co. Ltd.]" [3]

In its November 5, 1998, ruling, the British Columbia Securities Commission determined that

  • The effect of Arakis's July 6, 1995, news release "was to raise investor confidence in the future prospects of Arakis as evidenced by the trading in Arakis shares on both the VSE and NASDAQ."
  • "Arakis did not obtain independent financial or banking recommendations about AGI, nor did Arakis obtain adequate information from any other source regarding the financial resources or bona fides of the group."
  • Arakis's failure to "make adequate inquiries regarding the financial resources and bona fides of AGI did not meet the standard of due diligence required of Arakis to confirm the representations made by Arakis about AGI in the July 6 Release. Therefore the disclosure by Arakis about AGI in the July 6 Release was made negligently and was contrary to the public interest."

The August 21, 1995, issue of Barron's quoted the U.S. Department of State as "saying they [had] never heard of Arab Group International." [4]

On August 22, 1995, Arakis "issued a news release that the AGI financing would not be forthcoming in the form as announced" in the July 6, 1995, news release. [5]

Directors

  • Abbas Salih, Chairman of the Board and Director of Strategic Internet Investments Inc., "joined the board of directors of Arab Group International for Investment and Acquisitions (AGIIA) during 1992 and was instrumental in arranging the acquisition of the controlling share interest in The Ohio & Southwestern Energy Company." [6]

External links

Documents

Articles & Commentary