Named after a historical fort, Al Koot, one of the oldest forts in the country which was built in the ottoman period in 1880 when Doha was little more than a village, the company is a symbol of protection for the energy industry.
Al Koot was incorporated in 2003 under the Council of Ministers’ Resolution No. 27 issued in accordance with Article 68 of the companies Law ( the “AK Decree) as a 100 percent owned captive insurance company of Qatar Petroleum.
In 2008 QP decided to set up a petroleum services company and has transferred its ownership of its services companies, namely Al Koot, Gulf Drilling International and Gulf Helicopters to the new holding company Gulf International Services (GIS). QP also offered 70% of (GIS) to the public through an IPO process, in line with the state privatization policy.
Following the IPO process, Al Koot has become a subsidiary of Gulf International Services Q.S.C., established as a qatari shareholding company under the laws of Qatar. Following this reorganisation, Al Koot is no longer a direct subsidiary of QP. Under the terms of the IPO, QP agreed to continue to use the insurance and reinsurance Services to Al Koot as if Al Koot were still the QP group’s captive insurer.
Like several other Oil and Gas companies, Qatar Petroleum had taken the view that the volatility of the international insurance markets required a better risk management philosophy. The decision to incorporate a captive insurance company, therefore, was taken in order to achieve multiple objectives such as:
- Reducing reliance on external markets and increasing control over the group’s own business;
- Providing direct access to insurers in order to reduce costs through the achievement of more competitive rates by leveraging the capacity provided by the group companies;
- Self insurance mechanism is made possible through the captive structure;
- Retaining profits within the captive in order to provide greater financial strength to enable it retain more of the group’s risks and above all;
- Utilizing revenues generated from the captive to reinvest in Qatar for the benefit of the local economy.