ONE of Scotland's smallest listed companies is hoping to win contracts in the Middle East after appointing a 25-year-old member of the Kuwaiti royal family to its board.
Sovereign Oilfield Group said Sheikh Sabah Ali Fahad al-Salem al-Sabah, part of Kuwait's ruling dynasty, was joining its board as a non-executive director with immediate effect.
The Aberdeen-based oil services company, which has a market capitali
sation of less than £3 million, yesterday declined to take questions on the appointment.
But a statement from chief executive Graham Burgess made it clear part of the attraction was Sabah's connections.
"We are delighted to welcome Sheikh Sabah to the Sovereign team," Burgess said. "His knowledge, experience and connections will strengthen our capabilities in key Middle East and international markets and will expand opportunities to develop internationally."
The Al Sabah clan has ruled Kuwait for more than 250 years. After discovering oil in the 1930s, Kuwait is the Middle East's fourth-largest oil producer, and one of the wealthiest nations on earth.
Burgess, who owns more than 29 per cent of Sovereign, which he co-founded in 2003, was not returning phone calls.
The company declined to provide either a CV or a picture of Sheikh Sabah, saying that the latest addition to the board wished to keep a "low profile".
Asked what experience he would bring to Sovereign, which has a sales office in Kuwait, a spokeswoman for the firm said: "The idea is to progress and take advantage of his connections in the Middle East to help facilitate Sovereign's expansion there. Hopefully new contracts will come through."
It is unclear what the attraction of becoming a non-executive director of an Aim-listed minnow is be for Sabah, who, like other members of his family, is likely to receive a significant monthly stipend from the office of Kuwait's Emir.
According to Sovereign's 2007 annual report, non-executive directors Geoffrey Pearson and Dr Graham Dixon were paid £18,000 for attending 11 meetings.
It is the second board position for Sabah, who also has a position on Canadian company Infintive Corporation, although that company's status is listed as "dormant".
Sovereign appears to need the contacts its latest recruit could bring. Despite a boom in investment in oil services due to record crude oil prices, its shares have fallen by more than 80 per cent in the last year on concerns about debt levels.
Although it recorded 100 per cent increase in turnover in the six months to 30 September over the same period in 2007, its last results available, Sovereign's pre-tax profit fell from £1m to nil.
Its shares were unchanged on 15.75p yesterday.
The full article contains 453 words and appears in The Scotsman newspaper.
