Koral Energy International Ltd. has acquired a floating production unit (FPU) and the associated O&M contract from Singapore-based Mercator after negotiations that started by the end of 2016. The acquisition is considered Koral’s first strategic investment in Africa’s energy sector, Petroleum Africa reported.
According to World Stage Group, the FPU and O&M contract states that Koral will be working on a project offshore Nigeria. The company is planning to invest in the FPU to improve the service delivery to the Ebok field offshore Akwa Ibom in Nigeria’s Niger Delta and to boost production operations.
Koral’s Managing Director, Patrick Vallette D’Osia, said while commenting on the acquisition, “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.”
As he further explained, the company believes that “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.”