Seven Energy International Limited (“Seven Energy” or the “Group”), the leading integrated gas company in South East Nigeria, with oil and gas interests in the region, said that it has secured $100 million of new equity capital.
This comprised of $50 million from existing shareholders of the Group, including Temasek, Petrofac, Capital International Private Equity, Standard Chartered, International Finance Corporation and IFC African, Latin American and Caribbean Fund, by way of an open offer and $50 million invested by the IDB Infrastructure Fund II, sponsored by the Islamic Development Bank and other institutional investors.
The IDB Infrastructure Fund II, with a target fund size of $2 billion, invests in infrastructure opportunities across Asia, the Middle East and Africa.
The fund is managed by ASMA Capital Partners B.S.C. (c) (“ASMA”).
The Chief Executive Officer of ASMA, Stephen Vineburg will join the Board of Directors of Seven Energy.
These additional funds will enhance Seven Energy’s liquidity as it completes the gas pipeline that integrates its existing pipelines in the South East of Nigeria over the next few months.
When completed, Seven Energy will own and operate a flexible gas transportation network which reaches from Ukanafun and Ikot Abasi in the West to Calabar in the East.
This will enable the group to deliver more gas to Nigeria’s growing domestic market for power generation and industrial consumption.
Seven Energy’s total investment in gas production, processing and distribution infrastructure is over $1 billion.
The group is currently delivering total gas volumes in excess of 110 million standard cubic feet per day (“MMcfpd”) to three power stations, a cement plant and a fertiliser factory and is the leading integrated gas company in south east Nigeria.
As the power stations – Alaoji, Calabar and Ibom – completes their commissioning work and electricity transmission infrastructure, the group forecasts gas deliveries to increase to 200 MMcfpd over the coming year.
Speaking on the development Seven Energy’s Chief Executive Officer, Phillip Ihenacho, said, “I am pleased by the continued support shown by our leading shareholders and the vote of confidence in our business plan demonstrated by the investment from the IDB Infrastructure Fund II. Seven Energy is now established as a significant participant in the rapidly developing Nigerian gas market. Our gas deliveries have more than trebled during the course of 2015, and are currently running in excess of 110 MMcfpd.
He continued, “This new funding enables us to complete our current development phase, enhancing our pipeline network which will be capable of transporting 600 MMcfpd of gas to the growing regional market.”
