ADM Energy, an exploration and production company has reinvigorated its investment interest in Nigeria oilfield Sector. The Company Presently holds an operating interest in OML 113, offshore Nigeria, which contains the Aje field, has listed its future investment strategy for a larger portfolio of projects across Nigeria and West Africa in 2020 and beyond.
The Company recently made significant changes to the management Board, by appointing Osamede (‘Osa’) Okhomina a Nigerian and specialist in the Nigerian Oil & Gas sector with deep-rooted connections in the country and across West Africa, as its Chief Executive Officer in a bid to strengthen the company’s indigenous presence and geographical know-how of its investment assets now being made available across Nigeria and West Africa. Based on this significant management, the Company will be
rogressing in a meaningful way its plans to build a larger investment portfolio of projects. By leveraging its extensive network across Africa, the new management team has identified a number of investment opportunities and continue to evaluate new potential investments in assets at varying stages of the production cycle including appraisal, development and producing assets. It has also actively engaged in conversations with a number of parties including potential funding partners, off-takers and local project partners to further support the Company in the development of its asset portfolio.
The Company’s primary approach to investments will be to ‘option’ appraisal assets where oil and gas has already been discovered, conduct a detailed evaluation, and then make a debt or equity contribution to access future
pside. The benefit of this approach is that the Company raises equity only after the asset has been secured.
The Board believes that in the upstream sector, the international oil companies (‘IOC’) have divestment programmes planned and management estimates that up to 500,000 barrels per day could be sold to independent operators. For these deals to be financed, they will require local expertise, close relationships and experience of operating in the region. As a result, ADM plans to acquire value investments by adopting the following methods:
International Trading Partners
In the Board’s opinion, the major oil traders have become the de-facto financiers for many acquisitions, however they often struggle to find partners with the necessary credibility. It is the intention of ADM to use the relationships of the senior management team to partner with these trading companies, who can provide capital for projects identified by
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