Offering2025-11-11T13:20:01+00:00

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Overview of AEC

Established in 2015, AEC is a leading Kuwait-headquartered onshore drilling and oilfield services provider focused on rig and well services that support upstream production and maintenance programs. With a proven operating track record and a fleet of 20 active rigs in Kuwait, AEC delivers safe, reliable field execution across strategically important oilfields, helping operators maintain production, improve uptime and deliver projects on schedule. The Company operates a modern and young rig fleet with a total installed capacity of 20,600 HP and collaborates with global partners in the industry. The Company operates through two complementary business segments:

The Company’s activities span clearly defined operating verticals:

  • Drilling Services, supported by a modern, high-utilization rig fleet, and

  • Oilfield Services, providing well lifecycle support through a combination of in-house capabilities and strategic technical partnerships.

With its Kuwait focus, proven execution record and scale in rig and well services, AEC is a critical enabler of the country’s upstream plans – providing the capacity and field reliability required to deliver and maintain wells safely and efficiently.

Our Leadership

Board of Directors

Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah

Chairman

Eng. Rawaf I. Bourisli

Vice Chairman

Ahmad M. Al-Ajlan

Board Member & CEO

Vikas Arora

Board Member

Talal Al-Qassar

Board Member

Executive Management

Ahmad M. Al-Ajlan

Chief Executive Officer

Wafaa Al-Shatti

General Manager – HR & Admin

Jainuddin Jhabuawala

General Manager – Finance

Ivan Chikunov

General Manager – Services & Business Development

Craig Rasmussen

General Manager – Drilling & Workover

Shane Thomas Welles

Manager – Operations

Egbert Micame

Manager – HSE

Faisal Saleem

Manager – Information Technology

Message from the CEO

“ AEC was founded with a clear purpose – to support Kuwait’s oil and gas industry with reliable, high-quality field services that keep production moving safely and efficiently. Since our founding in 2015, we have grown into one of the country’s leading onshore drilling and oilfield services providers, operating a fleet of 20 rigs and a broadening range of specialized services that underpin Kuwait’s upstream operations.

Throughout the last decade as we built AEC, we remained committed to delivering excellence in every well we service. We have built strong partnerships, developed exceptional local talent, and earned the trust of clients through consistent operational performance and a deep understanding of their needs.

This private placing marks an important new chapter in AEC’s journey – opening our business to investors and strengthening the foundations for long-term, sustainable growth. It reflects our belief in transparency, accountability, and alignment with Kuwait’s vision to deepen and diversify its capital markets.

As we look ahead, we remain focused on expanding our capabilities, continuing to invest in our people and technology, and playing a leading role in advancing Kuwait’s energy sector for decades to come. Beyond Kuwait, we continue to evaluate opportunities to replicate our highly successful operating model across the GCC.

Thank you for your trust and support as we take this next step in AEC’s growth story. “

Ahmad M. Al-Ajlan (Chief Executive Officer)

AEC in Numbers

20

Onshore Rigs (as of H1 2025)

10%

Market Share (Kuwait’s active onshore rig fleet as of H1 2025)

KWD 323.5 mn

Backlog (as of H1 2025)

72% / 28%

Drilling vs. Oilfield services (backlog split as of H1 2025)

KWD 13.5 mn

Revenue (H1 2025A)

KWD 7.0 mn

EBITDA (H1 2025A)

0.09

LTIR (H1 2025A)

1,265

Employees (H1 2025A)

KWD 20.8 mn

Revenue (FY 2024A)

KWD 10.2 mn

EBITDA (FY 2024A)

+26.6%

Revenue CAGR (22-24A)

51.9% | 49.0%

Margin H1 2025A | FY 2024A

Investment Highlights

Kuwait’s Leading Onshore Drilling and Oilfield Services Champion2025-11-08T08:04:07+00:00

  • AEC is Kuwait’s leading local private onshore drilling contractor, operating 20 rigs as of H1 2025, equivalent to approximately 10% of Kuwait’s active rig fleet. AEC is fully Kuwaiti-owned and offers onshore drilling and a broad suite of oilfield services.  
  • Since commencing operations with two rigs in 2016, the Company has expanded its fleet tenfold and progressively added oilfield services through obtaining pre-qualifications for  activities such as electric submersible pumps (ESP), slickline, once-through steam generator (OTSG) services, tubular inspection, cementing, mobile equipment inspection, directional drilling, and workshop capabilities, amongst others, and is in the process of obtaining pre-qualifications for additional services. AEC remains the only local company with operations and capabilities across both drilling and oilfield services, establishing itself as local champion. 
  • This development reflects AEC’s long-term strategy to evolve from a drilling contractor into a full-cycle well solutions provider. The platform combines local operating experience with international technology partnerships, including JVs with established global oilfield service providers, enabling efficient and competitive execution. The majority of AEC’s fleet has been delivered or refurbished since 2020, providing a modern asset base with one of the youngest fleets in Kuwait (average rig age of 2.07 years) and a 30-year operating horizon.  
Attractive Financial Profile with Strong Cash Generation2025-11-08T08:04:29+00:00

  • AEC has delivered consistent financial growth, supported by high-margin operations and disciplined cost management. Between 2022 and 2024, revenues grew from approximately KWD 13 million to KWD 21 million.  
  • The Company has maintained EBITDA margins above 45% since 2022, reaching 52% in H1 2025, well above the regional peer median of approximately 42% (avg. ’22-’24). This margin strength reflects the efficiency of AEC’s young fleet, lean overhead structure, and efficient operations with minimal downtime (<1%). 
  • The Company maintains a conservative capital structure, with a Total Backlog-to-net debt ratio of 4.7x and a target debt-to-equity ratio below 1.25 as of H1 2025. This combination of consistent growth, high margins, strong free cash flow generation, and conservative leverage provides a robust foundation for sustainable shareholder value creation.
Operating in an Industry with Favorable Fundamentals and Multi-Year Visibility2025-11-09T05:48:32+00:00

  • Kuwait’s upstream sector is supported by exceptionally strong fundamentals. The country has oil and gas reserve life of approximately 276 years, among the longest globally, a low lifting cost of c.US$8.5/bbl placing it at the bottom of the global cost curve, and CO₂ intensity of only 8.5kg/bbl, underscoring the long-term competitiveness of its production base.
  • On a global level, conventional oil and gas are expected to remain central to the energy mix, accounting for around 55% of global primary energy supply by 2030. Meeting this demand will require c.21 mmboepd of incremental production by 2030, with the GCC set to provide nearly 23% of the world’s oil supply.
  • Within this context, Kuwait has seen onshore rig activity expand consistently, with the rig count nearly tripling from 94 in 2012 to 240 as of 2024, despite periods of oil price volatility. Kuwait represents a structurally attractive drilling market where onshore wells are accessible and non-harsh compared to offshore or ultra-deepwater segments, which allows for lower cost and faster mobilization.
Resilient Business Model Proven Across Cycles2025-11-08T08:05:14+00:00

  • AEC has consistently expanded through multiple market cycles, growing its fleet tenfold from 2 rigs in 2016 to 20 rigs as of H1 2025. This expansion was achieved despite the 2016 oil price downturn and the 2020–21 COVID disruption, underscoring the Company’s ability to invest counter-cyclically and capture share. 
  • Since inception, AEC has maintained a 94% success rate on all tenders it has participated in, and achieved full utilization of its fleet, compared to Kuwait’s industry average of approximately 80% in 2025 and a GCC average of around 64% in 2024, highlighting the resilience of its operating model even in a competitive market. Operational reliability is further evidenced by non-productive time consistently below 1%. 
  • AEC’s resilience is supported by lean overheads, fixed-rate long-term contracts that reduce exposure to industry cyclicality, and high barriers to entry, including multi-year prequalification, stringent HSE requirements, and capital intensity, which collectively position AEC to sustain leadership and operational continuity across cycles.
Full-Spectrum Upstream Capabilities Supported by Strategic Partnerships2025-11-08T08:05:34+00:00

  • AEC has established a strong track record of forming strategic joint ventures and partnerships with global technology leaders such as KCA Deutag, CPVEN, COSL, Expert Optima, NaftoServ, TRG, Jereh, and Kerui.  
  • These partnerships facilitate technology transfer, expand access to specialized services, and accelerate AEC’s oilfield services growth. 
  • As of H1 2025, oilfield services accounted for approximately 28% of AEC’s contracted backlog, reflecting the growing scale of this business line. In addition, non-tender-based activities, including inspection and workshop services, provide additional revenue diversification and cash flow resilience. 
Young, Fit-for-Purpose Fleet Driving Efficiency, Reliability, and Safety2025-11-08T08:05:56+00:00

  • AEC operates one of the youngest and modern rig fleets in Kuwait and the wider GCC, with an average age of 2.07 years compared to the Kuwait market average of approximately 15.9 years. Of the Company’s 20 rigs, 18 have been delivered or comprehensively refurbished since 2022, with horsepower ranging from 550 HP to 3,000 HP and a total installed capacity of 20,600 HP. As of H1 2025, 100% of the fleet is contracted and fully operational. 
  • The fleet is designed for mobility and efficiency, supported by advanced rig-move systems. With a 30-year operating horizon, AEC’s rigs provide a durable and cost-effective base to meet Kuwait’s growing drilling demand. 
  • Kuwait is estimated to witness 120 drilling contracts and 81 workover contracts between 2025E-2030E, underpinned by c.US$9–10 billion of annual upstream investment, reinforcing sustained demand for AEC’s young, fit-for-purpose fleet. 
Significant Backlog Providing Multi-Year Revenue Stability2025-11-08T08:06:16+00:00

  • AEC’s contracted position provides strong visibility on future performance. The Total Backlog (see below) expanded from KWD 63 million in 2020 to KWD 131 million in 2022 and reaching KWD 3234 million as of 30 September 2025, reflecting growth in rig capacity, expansion into oilfield services, and continued market share gains.  
  • The current Total Backlog as of 30 September 2025, consists of signed and awarded contracts totaling KWD 261.9 million, comprising drilling contracts of KWD 170.3 million and services contracts of KWD 91.6 million, and under tender contracts totaling KWD 61.6 million 
  • By segment, 72% of the Total Backlog relates to drilling services and 28% to oilfield services, underscoring the diversification of revenue streams. Virtually all backlog is KWD-denominated, providing currency stability, and the majority is contracted with KOC, reflecting the strength of long-standing customer relationships.
Seasoned Leadership Team and Institutionalized Governance2025-11-08T08:06:42+00:00

  • AEC’s management team brings an average of more than a decade of experience in Kuwait’s upstream sector and has overseen the Company’s transformation from a two-rig operator into a market leader. The team has consistently delivered projects on time and within budget while maintaining strong, collaborative relationships with Kuwait’s national operator. 
  • The Company has institutionalized governance in line with Capital Markets Authority requirements, supported by a diverse Board and established Board committees, including Audit, Risk, and Remuneration. Independent directors to be appointed to further align governance with international best practices. 
  • AEC employs over 1,200 professionals across 25 nationalities, with around 70% in technical roles. This depth of operational expertise underpins execution capabilities and reinforces a strong safety culture across the organization. 
Clear Strategy for Disciplined Growth and Shareholder Returns2025-11-08T08:07:26+00:00

  • AEC’s strategy is built on a disciplined approach to growth, underpinned by Kuwait’s strong fundamentals and long-term production targets. Kuwait’s national operator has announced plans to raise crude production to 4.0 mmbpd by 2035 and free gas production to 2 bcfd by 2040, requiring around 201 drilling and workover contracts by 2030. With a proven track record and long-standing relationship with the national operator, AEC is well-positioned to capture this demand. 
  • The Company continues to expand its oilfield services portfolio, having secured pre-qualifications and awards across electric submersible pumps, slickline, inspection, and OTSG services. Further pre-qualifications are underway, reducing reliance on joint ventures while leveraging knowledge transfer from technical partners. 
  • Regionally, AEC is assessing opportunities across the GCC, where incremental drilling and workover demand is expected by 2030. Growth options include independent bids, new joint ventures, and selective acquisitions, which offers multiple pathways to scale and enhance competitive positioning. 

Key Transaction Milestones

Date TBA

Intention to Float

Date

Price Range Announcement and Institutional Bookbuilding

Date

Final Price Announcement

Date

Announcement of Final Allocation of the Offer Shares

Date

Refund of excess subscription amounts (if any)

Transaction Information & Documents

Key documents

  • Kuwait Prospectus

  • Private Placement Memorandum (pdf)

Announcements

  • ITF PR

How to subscribe

1.  Intention to Float

2. Price range announcement

3. Offering commencement

4. Close of Retail Subscriptions

5. Close of Institutional Subscriptions

6. Announcement of the final Offer Price

7. Notification of Retail Allocation by SMS

8. Commencement of refunds

9. Expected listing date on the ADX

Frequently Asked Questions

What does AEC do?2025-11-08T08:08:52+00:00

  • Action Energy Company (“AEC” or the “Company”) is a leading Kuwait-based company, offering a suite of onshore drilling, workover, and well services that support upstream production and maintenance operations. 
  • The Company operates through two complementary business segments: 
    • Drilling Services: Comprehensive oil and , gas, and water well onshore drilling services supported by a modern, high-utilization workover and drilling rig fleet 
    • Field Development and Oilfield Services: Well lifecycle support through a combination of in-house capabilities and strategic technical partnerships 
  • With a proven operating track record and a fleet of 20 active rigs in Kuwait, AEC delivers safe, reliable field execution across strategically important oilfields, helping operators maintain production, improve uptime and deliver projects on schedule.  
  • The Company operates a modern and young rig fleet with a total installed capacity of 20,600 HP and collaborates with global partners in the industry. 
How has AEC performed financially over the past year?2025-11-08T08:10:30+00:00

  • The Company has maintained strong EBITDA margins above 45% since 2022, reaching 52% in H1 2025, well above the regional peer median of approximately 42%. This margin strength reflects the efficiency of AEC’s young fleet, lean overhead structure and the growing contribution of higher-margin oilfield services. 
  • For the year ended 2024, AEC generated revenues of KWD 20.8 million and Adjusted EBITDA of KWD 10.2 million, representing a margin of 49.0%. 
    • For the six months ended 30 June 2025, the Company generated revenues of KWD 13.5 million and Adjusted EBITDA of KWD 7.0 million, with a margin of 51.9%. 
  • This financial performance reflects efficient operations, lean overheads, and the contribution of higher-margin oilfield services. 
How will AEC use the proceeds of the Private Placement?2025-11-08T08:13:09+00:00

  • The Company intends to use its share of the Primary Portion Proceeds, less its portion of the Offering Expenses and Listing Expenses, for: 
    • 80-90% of the proceeds for reducingThe proceeds will partially be used for reducing part of the Group’s indebtedness and fund the Group’s growth strategy. 
    • And a lesser part of the proceeds will be used 10-20% of the proceeds for general corporate purposes.    
  • The proceeds from the Secondary Offering will be received by the Selling Shareholders.  
Who are AEC’s customers?2025-11-08T08:09:20+00:00

  • AEC’s business is anchored by its strong, long-standing relationship with Kuwait Oil Company (KOC), the national oil company and the Company’s primary customer. 
  • A substantial amount of revenue is derived from long-term contracts with KOC, with average remaining contract durations of approximately five years across drilling and workover services. 
  • Additionally, the Company has entered into long-term lease arrangements with KCA Deutag (KCAD), under which two of its 3,000 HP rigs are contracted to KCAD providing AEC with a stable lease income while also reinforcing its role as a trusted local partner to leading international drilling contractors. 
On what exchange will AEC’s shares be listed and when is it the listing date?2025-11-08T08:10:58+00:00

  • AEC is expected to start trading on the Premier Market of Boursa Kuwait within thirteen (13) Business Days from the announcement of the results of the final allotment. 
  • The exact date will be published following successful completion of the Offering.  
What will the dividend policy be?2025-11-08T08:12:10+00:00

  • The Company intends, subject to the approval of the board of directors and the availability of distributable reserves , to distribute a total dividend of approximately KWD 7 million in respect of the net profit generated for the financial year ending 31 December 2026, with the first partial payment expected in October 2026 and the remainder in April 2027.  
  • Thereafter, subject to Board approval and the availability of distributable reserves, the Company intends to distribute dividends on a semi-annual basis (in October and April of each year), targeting a payout ratio of approximately 50%–60% of the net profit generated for the relevant financial period. 
  • Any declaration or payment of dividends will be subject to the Company’s profitability, business plan and cash flow position, and is subject to the approval of the General Assembly. 

Receiving Banks

  • +971 2 616 1800

  • 60 050 2030

  • 04 316 0066

  • 600 500 946

Joint Global Coordinators

National Investment Company

Financial Communications Adviser

  • +971 54 534 9443 Alex Dart

  • AEC@kekstcnc.com

General Inquiries

  • contact@actionenergykw.com

  • +965 22247533

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