IFC considers backing Nigeria’s Seven Energy

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IFC considers backing Nigeria’s Seven Energy

The International Finance Corporation has disclosed that it is considering investing in Seven Energy International Limited.

Seven Energy International Limited is a Nigeria and UK based oil and gas exploration and production (“E&P”) and midstream company. It is one of the few E&P companies in Nigeria with a focus on developing and commercializing gas that was historically stranded or flared, and supplying it to Nigeria's domestic market for power generation and industrial consumption.

The proposed investment consists of an IFC investment of up to $50 million in Seven Energy’s inaugural bond issue. The bond proceeds will be used, among other things, to

  • (i) retire some of the company’s existing liabilities;
  • (ii) fund the construction of the Oron-Calabar pipeline and
  • (iii) general corporate uses.

Seven Energy currently has two core areas of operation in the South East and North West onshore Niger Delta. The South East Niger Delta has significant discovered but undeveloped gas fields, with some installed gas demand and significant growth potential, but very limited gas processing and distribution infrastructure. The North West Niger Delta is characterized by mature oil and gas fields, with pipeline infrastructure in place, but with significant additional undeveloped gas reserves and a shortage of gas processing capacity.

Seven Energy was founded by a group of Nigerian investors and international executives in 2004. It benefits from a strong management team experienced in upstream and midstream, as well as gas to power generation, under the leadership of CEO Phillip Ihenacho. As of May 31, 2014, three shareholders held greater than 10% of Seven’s shares: Temasek Holdings, Petrofac Limited, and Capital Group Private Markets. IFC and AMC ALAC Fund held 7.7% and 3.1%, respectively.

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