A Review of the Nigerian Energy Industry

Qatari firm to invest N248bn in Nigeria’s Heritage Oil

Qatari currencyIke Amos

04 May 2014, Sweetcrude, Houston, Tx – Qatari Investment Fund, Al Mirqab Capital, owned by former prime minister of Qatar, Sheikh Hamad bin Jassim bin Jabor Al Thani and his family, has concluded plans to invest in the Nigerian oil industry, through the acquisition of Heritage Oil in a deal worth $1.55 billion (£924 million), about N248 billion.

Heritage holds significant stakes in onshore oil fields in Nigeria and exploration rights in Papua New Guinea. Heritage and its Nigerian partner are developing the Oil Mining Lease (OML) 30 in Nigeria, where the company said production has reached more than 50,000 barrels a day.

According to reports obtained from Reuters, Heritage Oil, in addition to its Nigerian production activities, also produces oil in Russia and has exploration assets in Libya, Pakistan, Malta as well as Papua New Guinea.

Tony Buckingham, Founder and Chief Executive Officer, Heritage Oil, will retain a 20 per cent holding, from his initial 34 per cent stake, and also serve as an adviser to the company on an exclusive basis for at least five years.

Michael Hibberd, Chairman, Heritage Oil, disclosed in a statement that the independent committee of Heritage’s Board believes that the offer represents an attractive and certain value, while expressing optimism that the deal will be finalised in the third quarter of this year.

Hibberd said that the company has built a diversified portfolio over the past two years through the acquisition of a major interest in the OML 30 in Nigeria and new exploration licences in Papua New Guinea, as well as the disposal of the Miran well in Kurdistan.

“The integration of OML 30 has provided the company with strong cash flows to support its exploration portfolio and increased value to Heritage shareholders,” Hibberd said.

According to the Financial Times, Al Mirqab has incorporated a wholly owned new subsidiary, Energy Investments Global Ltd (Bidco), for the purpose of the offer.

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