By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s top oil marketing firm, Oando Plc Thursday announced it has completed the sale of one of its wholly owned subsidiaries East Horizon Gas Company (EHGC) to Seven Energy International Limited for $250 million.
Oando in a statement made available to InvestAdvocate said it completed the sale of the entire issued share capital of EHGC to Seven Energy for a total gross consideration of up to US$250 Million.
The top Nigerian oil marketing firm said the consideration consists of an initial payment of $100 million in cash; the assumption by Seven Energy of existing liabilities of EHGC, including approximately $62 Million of bank indebtedness; and the balance in deferred payments due on achievement of certain operational and contractual conditions.
‘’ It is expected that these conditions will be satisfied during the course of 2014,’’ Oando said.
EHGC is a special purpose vehicle operating a 128km, 120mmscfd, 18-inch natural gas transmission and distribution pipeline traversing the Akwa Ibom and Cross River States. EHGC also has a gas sales agreement to supply up to 25 mmscfpd, increasing to 50 mmscfpd in 2016, under a 20 year “take-or-pay” agreement expiring in 2032.
