Niger Delta E&P plans to raise additional $400 million
An indigenous company, Niger Delta Exploration & Production Plc has concluded arrangement to raise additional $400 million by way of private placement and Initial Public Offering (IPO) in the Nigerian capital market.
Besides, the company plans to extend its petroleum exploration activities across sub –saharan Africa.
The company had already completed the first tranche of $100 million while the next tranche of $300 million would be sourced through IPO that would open in the next few weeks.
Addressing market participants during the NASD OTC Plc ‘s investors forum held in Lagos yesterday, the Managing Director of the company, Dr Layi Fatona explained that the company is also seeking opportunities outside Nigeria, noting that the firm has entered into partnership with the State National Company of Southern Sudan for low-cost entry opportunity in oil &gas exportation.
He added that the synergy would transform the company from a fully integrated Nigerian Oil&gas company to a Pan African company.
The capital raising, according to him, would fasttrack the company’s repositioning exercise, through the acquisition of more assets, as well as help increase gas production.
“We are the only indigenous company can boast of ownership of a mini refinery. Last year, we sold a total of 20.2 million liters of diesel to Port Harcourt refinery. We contribute to domestic market notably diesel. We have 2,000 licensed diesel buyers that come to our facility for diesel. Since inception, we have delivered 60 million liters of diesel to the Nigerian market. We also deliver gas to NLNG.
“We do not flare gas. In 2016, we won World Bank contributions to non-gas flaring. We are currently embarking on cost cutting exercise and we are looking at other areas especially diversification and capital raising to increase production and acquire additional assets and facilities.”
Going forward, Fatona explained that the company would increase its gas production capacity to drive pioneer projects in Nigeria, as well as play active role in power generation.
“We would expand penetration in serving Nigerian Market. WE would be a very strong player in Nigeria gas market. We have monetized and commercialized our gas and that has given us enough leverage. We also want to paly in power generation and we would negotiate delivery of other products.”
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