Seven Energy concludes N39.7bn EHG acquisition
Seven Energy Limited, a whollyowned subsidiary of Seven Energy International Limited, said yesterday that it has completed the acquisition of the entire issued share capital of East Horizon Gas Company Limited (EHGC) for a total consideration of up to $250 million, about N39.750 billion.
This acquisition enhances Seven Energy’s position as a leading gas marketing and distribution company in South East Nigeria, expanding the reach of its gas pipeline network in this growing market to over 260 km, diversifying its customer base across key sectors of the Nigerian economy and increasing long-term contracted gas sales volume to 200 million metric cubic feet per day (MMcfpd).
EHGC is a gas distribution and marketing company that operates the 128km East Horizon gas pipeline through Akwa Ibom State and Cross River State in South East Nigeria. EHGC also has a gas sales agreement with an industrial offtaker to supply up to 25 million cubic feet of gas per day (mmcfpd), increasing to 50 mmcfpd upon completion of the planned expansion of the offtaker’s existing plant, under a 20-year gas sales agreement expiring in 2032.
Speaking on the acquisition in a statement, Phillip Ihenacho, Chief Executive Officer of Seven Energy, said the “deal marks a significant milestone for Seven Energy as we continue to deliver on our strategy to become the market leading independent gas distributor in South East Nigeria,” adding that “the East Horizon pipeline is an important component of the energy infrastructure of the region and we are pleased to add this asset to our portfolio.”