Kuwaiti investment in Areva boosts our future prospects: Bertrand Barré

Tuesday,14 December 2010


By : Jameel W. Karaki

PARIS: In an exclusive statement to three journalists made by Bertrand Barré, scientific advisor at Areva , during a visit organized by Invest in France Agency Paris stated that the recent Kuwaiti investment in Areva which was announced recently about the manufacturing of nuclear reactors gave a great boost to the future of the company.


He added that the capital increase was long awaited with Kuwait, but was finally carried out and the capital increased to 900 million euros (19.1 billion US dollars). While the Kuwait Investment Authority (KIA), the Gulf state's sovereign fund, invested 600 million euros (226.5 million Kuwaiti dinars) in Areva, which is equivalent to a share of 4.8 percent in the context of a capital. The increase will also include France's contribution of 300 million euros (KD 113.257 million), this preceded negotiations facing various challenges due to political and financial issues. The financial needs for the investment group, equals to 12 billion euros (KD 4.53 billion).

It is expected that the implementation of the second phase of the capital increase will occur within three to six months, with the inclusion of Areva shares on the bourse. The French government owns more than 90 percent of the company being traded on the Paris Stock Exchange in the form of bonds 4.03 percent of the capital.

Speaking about this cooperation Barré said, "The cooperation with Kuwait gives us a great future prospect of where we can develop energy supply and the provision of services to Kuwait, reflecting this long-term investment benefit". Adding that this news is very delightful because it will enable us to implement our future projects because the world needs more than twice the energy it needed in the past."

He went on to say that Areva is ranked first in the global field of nuclear energy, noting that Areva has scientific and technological solutions that aid the production of uranium and recycling of nuclear waste, traffic through the manufacture of nuclear reactors. He also noted that, we also do not neglect the development of renewable energy yielded from solar, hydrogen, and biological power. When asked about any new contracts or agreements between the Kuwaiti government and Areva he said, "we have some discussions with Kuwait as well as oil producing countries, because most of oil producing countries are focusing to include nuclear energy in their mix including Kuwait and I don't have any news to tell you about it."

Barré pointed out that Areva can supply Kuwait with both power plans and the services of fuel recycling noting that Areva signed an agreement with India recently in which Areva will supply two plants and also 25 years for fuel supply for these plants. Our company is both able to build, design plants, mining, and enriching Uranium."

Noting that that company has competitors that are able to supply uranium or reactors but very few are able to offer a package including the security of fuel supply. When asked a question regarding the feasibility of nuclear energy, he replied it is expensive to build cheaply to operate what is considered a long term investment. The kilo-watt produced by nuclear plant costs 60 percent as capital expenses and 40 percent as operating and fuel. In the long run nuclear energy will be competitive everywhere.

Last March's a survey showed that nuclear that energy is a competitive source of energy. Commenting on the memorandum signed with the Japanese government he said that, "we have a long history of corporation with Japan as we have been supplying fuel services to a Japanese company for more than 25 years or more maybe 30 years. We have also transferred the technology for them to build a safer planet and help them in the recycling of fuel. It is a very long term partnership.

Asking if Areva is going to acquire the contract with the Kuwaiti government he stated that, "there is nothing for sure. Three years ago, we had a good chance in the United Arab Emirates (UAE), but in fact we lost the contract to South Korea. The only advantage we had is to offer an extensive package that would."

Commenting on a question about if there is a corporation with Iran, he clarified that the company had some cooperation before the Islamic revolution and now there is some suspicions about the Iranian nuclear program according to the international community so we have no current corporation. While for Israel he said, "the issue is different, Israel didn't sign on the treaty of limitation of spread of nuclear weapons, and its activity is concentrated on the production of bombs. Unlike Iran who signed the treaty and according to who is obliged not to produce nuclear energy for non peaceful purposes he concluded, "I am not saying it's peaceful or non-peaceful but throughout a18 year duration it was developed secretly."

About their future plans, he said that, "we are targeting United Kingdom (UK) as a next customer, because now it's a gas importer since the north gas storage was somehow depleted. As a result it is likely to have the UK as a big customer and expects to sell four or six nuclear plans to UK. The second country is the US, and we have an interest in Italy, as in1987 Italy stopped its nuclear program and started importing oil and gas. In addition we are competing for one reactor in the Czech Republic.