PURCHASE OF THE KITCHEN LIGHTS UNIT (KLU) IN COOK INLET, ALASKA
Summary Podcast Episode 2
In this podcast, Kay Rieck explains how he financed the purchase of the Kitchen Light Unit in Alaska. Rieck explains that he personally financed the lease rights of the project as he was fascinated by it. However, purchasing the rights was just the beginning, as further logistical challenges followed, such as shipping a production platform through the Panama Canal.
Rieck further reports on his negotiations with a major German investor and their lawyer. The investor was willing to invest in the project if Rieck himself would contribute 20 million US dollars, which Rieck did. Despite this investment and the promising tax credits from Alaska, covering 65% of operational expenses and 45% of infrastructure costs, the investor withdrew due to concerns raised by their lawyer.
Ultimately, the financing of the entire project rested on the shoulders of investors who continued to believe in the potential of the Kitchen Light Unit and supported the venture. Rieck emphasized that the security and trust of investors were always his top priority, which was reflected in the intensive contract negotiations and his own financial participation.
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