Oando Plc, Nigeria’s leading indigenous oil and gas operator, has sold its gas subsidiary business, East Horizon Gas Company to (EHGC) to Seven Energy, one of the country’s foremost gas processing firms.
The sale would provide Oando $250 million in cash inflow, funds that would go a long way to boost the company’s liquidity.
“The proceeds of the sale will boost the group’s overall liquidity in furtherance of our main growth initiatives in the Upstream,” Wale Tinubu, the company’s CEO, was quoted by Business Day as saying.
The sale also underscores Oando’s desire to divest non-core assets and focus its attention on growing its upstream business, which has proven to be much more profitable.
The Lagos-based pan-African oil and gas operator controls interests in both the upstream and downstream sector of Nigeria’s oil industry, with operations cutting across exploration and production to refining and marketing. It is ranked Nigeria’s largest indigenous oil firm with market estimated to be in the region of $1 billion.
Seven Energy recently disclosed that a deal was in place for the acquisition of Oando’s EHGC assets, as it seeks to develop its gas processing infrastructure, following an announcement of a planned $800 million investment to fund projects across the country.