Kunle Kalejaye 19 April 2017, Sweetcrude, Lagos – Koral Energy International Limited has announced the acquisition of a Floating Production Unit, FPU, and the associated O&M contract that would enhance service delivery to the Ebok field offshore Nigeria’s Niger Delta.
The acquisition from Singapore-based Mercator will also further increase production operations at the field.
The company made the acquisition known April 12, 2017, marking its first strategic investment in Africa’s energy sector.
Commenting on the development, Koral Energy’s Managing Director Patrick Vallette D’Osia said: “This was a complex transaction, that required the alignment of multiple parties, across many jurisdictions, but plays to Koral’s strength in financial engineering and we are very happy to have delivered a sustainable and strong solution for the benefit of all.
“We believe there is a significant opportunity in Nigeria’s energy sector, with a range of assets potentially available to companies like Koral, who can bring innovative financial skills combined with an understanding of African markets.”
Late in 2016, Koral entered into discussions with Mercator, who were seeking to re-structure operations globally, and were able to design a financial solution that delivers on-going cash flows for Koral while delivering value to Mercator for their asset.
Koral successfully managed negotiations with Mercator, its client, Oriental Energy Resources and financial partners across multiple jurisdictions to design and implement a creative and sustainable financial solution for the benefit of all involved.
Koral maintains an on-going interest in deepening its investment portfolio in the African energy industry and supporting other asset owners in need of innovative
Koral was established in Mauritius to leverage emerging opportunities in Africa’s energy industry, with an initial focus on Nigeria. The company recognised that in a low oil price environment, and with a broad need for industry and financial re-structuring, its ability to bring financial expertise to support the industry would be attractive to a range of existing asset owners.
With both asset owners and service providers under pricing pressure, and disruption to production following a period of instability in the region, demand for investors willing to provide both equity and innovative financing structures is high.