Petralon Energy Limited (PEL) has announced its decision to offer for subscription, 20% of its equity share capital in Petralon 54 Limited, its wholly-owned subsidiary to Julius Berger Investments Limited (JBIL), a wholly-owned subsidiary of Julius Berger Nigeria Plc.
This decision, however, is subject to regulations, consents and approvals.
This was disclosed in a notification sent by the Julius Berger to the Nigeria Stock Exchange through its company Secretary, C. E Madueke.
The Details: Julius Berger Investments Limited said its Board of Directors agreed to the acquisition even though the process would require necessary engagements with stakeholders in the Oil and Gas Sector and receipt of regulatory approvals and consent.
It also added that the investment had been approved by the Ministry of Petroleum Resources but deliberations with key stakeholders were still on going.
The subsidiary also noted that it had sufficient share capital to make the investment operational as the development is in line with Julius Berger’s plans to diversify into the Oil and Gas Sector.
What you should know: PEL’s decision to offer Julius Berger 20% of its share capital in its subsidiary can be linked to a strategic partnership between the energy company and the construction giant far back in 2017. In 2017, Julius Berger aligned with Petralon Energy in a joint investment agreement to acquire and develop oil fields in Nigeria.
The alliance was to help Julius Berger diversify into the Oil and Gas Sector and diversify its revenue streams.
What this means: This means that Julius Berger is looking to also invest in the Oil and Gas Sector. This is coming after the discovery of oil and Gas deposits in the North after eight months of drilling the Kolmani River region at the border community between Bauchi and Gombe States.
About Petralon Energy Limited
Petralon Energy Limited is a Nigerian upstream energy company, established to acquire, develop, operate and finance hydrocarbon assets in the Nigerian oil and gas sector. The firm is concerned with sourcing oil and gas prospects in other African countries with rapidly evolving oil and gas sectors, such as Ghana, Kenya, Namibia, Uganda and Angola.
The company’s strategy is to build an upstream energy company with a focus on the mature, marginal and non-conventional sector of the Nigerian oil & gas industry, with immediate creation of increasing value. Partners include Eurafric, Tako E&P Solutions Limited, Xodus West Africa.
About Julius Berger Nigeria Plc
The company is a Nigerian construction company, headquartered in Abuja, with additional permanent locations in Lagos and Uyo. The company is represented across Nigeria in structural engineering and infrastructure works, and in southern Nigeria through domestic and international oil and gas industry projects.
About Julius Berger Investments Limited
The company is one of the subsidiaries of Julius Berger Group. It serves as the planning and support activities of the Strategic Business Development.