Addleshaw Goddard’s African Business Group has recently advised Seven Energy International Limited (“Seven Energy”) in securing US$255 million of new equity capital which will enable the Group to further develop gas supply opportunities in Nigeria’s domestic energy market.
Temasek, the Singapore investment company, has committed US$150 million, the International Finance Corporation (“IFC”), a member of the World Bank Group, has committed US$75 million, and the IFC African, Latin American, and Caribbean Fund (“IFC ALAC Fund”) has committed US$30 million. The investments will be in two tranches, the timing of which is subject to the satisfaction of certain conditions in the investment agreements.
The Addleshaw Goddard team advising Seven Energy was led by corporate and energy partner, Angus Rollo, and included partner Guy Winter and corporate finance associate Karen Orr.
This new equity capital will assist Seven Energy in the development of its growing portfolio of assets in Nigeria, where the Group is focusing on the development of upstream reserves and resources and gas infrastructure to provide gas to the domestic market for power generation and industrial consumption.
Angus Rollo, commenting on the deal, said: “Seven Energy continues to make huge strides in developing its position in the Nigerian gas market, and this investment demonstrates strong support for the company and its strategy. Historically, the relative lack of investment in gas development for the domestic economy has resulted in heavy reliance by local industry on imported diesel and fuel oil, which are much more expensive than locally-sourced natural gas. The emergence of a domestic gas market in Nigeria, led by indigenous companies like Seven Energy, to provide lower-cost energy for electricity generation and industrial users is creating exciting opportunities for global investors.”
Seven Energy Chief Executive, Phillip Ihenacho, said of the equity investment:
“Seven Energy has developed a strong and strategically important position in the rapidly developing gas market in Nigeria. I am very pleased that the Group has gained the support of Temasek, IFC and the IFC ALAC Fund, all highly-respected global investors.
“These investments are a vote of confidence in Nigeria and in Seven Energy’s vision to be the leading supplier of gas in the country.”
