Petralon Energy Completes Acquisition of Interest in Prime Oil & Gas

Petralon Energy is delighted to announce that it has completed the acquisition of a 6.06% shareholding in Prime Oil & Gas Coöperatief U.A. (Prime), thereby securing an indirect interest in producing deep-water assets offshore Nigeria. The acquisition was completed in two phases: the acquisition of an initial 4.56% interest in Prime in October 2021, and the acquisition of an additional 1.50% interest in March 2022. 

Prime’s primary assets include an 8% interest in OML 127 and a 16% interest in OML 130, two of Nigeria’s biggest producing deep-water blocks. OML 127 contains the Chevron-operated Agbami field while OML 130 contains the TotalEnergies-operated Akpo and Egina fields. 

The acquisition marks Petralon Energy’s entry into deep offshore in Nigeria, making it one of the few Nigerian companies to hold interests in producing deep-water fields. The company’s consolidated interest in Prime brings its net reflective production to over 3,300 barrels of oil equivalent per day (boepd) for 2022. 

Commenting on the acquisition, Mr. Ahonsi Unuigbe, Founder & CEO at Petralon Energy said:

“The acquisition of a minority shareholding in Prime is a demonstration of Petralon Energy’s commitment to grow true indigenous ownership within Nigeria’s upstream sector and diversifies the company’s portfolio to include a mix of marginal and deep-water assets with strong potential for future development”. 

“It is also a remarkable proof of Petralon Energy’s capacity to raise international financing for upstream oil & gas projects in Africa. The company successfully raised $60.5m in a span of six months in a funding mix which had debt provided by Banco BTG Pactual S.A., Cayman Branch and Standard Bank of South Africa, while the equity was provided by Coronation Capital” he concluded.  

Acquired Assets

Agbami, Akpo, and Egina are three deep-water fields that were put in production in 2008, 2009, and 2018 respectively. They are considered some of the highest quality oilfields on the continent and produce light, sweet crude oil for the export market. 

The licenses are also candidates for additional developments and exploration projects providing strong upside potential. OML 130 holds the Preowei oil field while OML 127 provides strong potential to monetize gas and cut carbon emissions via the Agbami Gas Project.