Sahara Group Listing Nigerian Oil and Gas Assets on Stock Exchange

Sahara Group Listing Nigerian Oil and Gas Assets on Stock Exchange

A Nigerian energy company, the Sahara Group, will dual list its oil and gas unit in London and Lagos along with a debut dollar bond sale, reported Bloomberg.

This move is meant to raise as much as $1.4b to buy oil blocs in the country.

“Over the next five years, our target is to be one of the largest indigenous producers in Nigeria,” said Executive Director Tonye Cole.

“We’re looking to raise somewhere between $500m to $600m for about 20 to 25% of the shares,” Cole added, which would value the unit at between $2 and $3b.

Sahara is taking advantage of the so-called indigenization laws in Nigeria’s oil industry. Sahara, Seplat Petroleum Development Co. and Shoreline Group make up 20% of Nigeria’s production of nearly 2m b/d.

According to The News the Nigerian National Petroleum Cooperation (NNPC) has begun the process of recovering over $7b in over-deducted tax benefits from joint venture partners on major capital projects, as announced by the Nigerian presidency.

Mallam Shehu Garba, Senior Special Assistant to the Nigerian President on Media and Publicity, said NNPC had also hired an international accounting firm to uncover the actual amount due to the government on the Strategic Alliance Contracts entered into by Nigerian Petroleum Development Company.

He added that about $2.46bn of government money should be recovered.

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