Afren Nigeria has successfully raised over $2billion through equity on its operations in the oil and gas business, based on strong technical team and proven track records as an explorer and fast track developer .
Other factors that helped the company further in raising the money, include good governance culture, right partnership and the Nigerian opportunity set.
This consequently helped the company to hit production within a span of two and half years in Okoro asset which now is producing about 20,000 barrels per day.
Deji West, director of Finance for Afren Nigeria, who spoke at the FBN 2013 Oil and Gas round table with the theme ‘Raising Equity/Mezzanine Capital For Oil and Gas Companies’, said that a significant reserve has further been discovered in assets that the company was working on, adding that they are performing beyond the initial expectation of the investors.
West said, “It is key to have an efficient and effective management team, as well as partners that have the same mission and vision. You need to work with your partners to ensure that you are all working in the same strategic direction.”
Kayode Akinkugbe, managing director of FBN Capital, also speaking at the event said, “We consider ourselves to be innovators in the financing space and if we are able to assist indigenous entities in better understanding what it takes to arrange finance from an early stage, we believe we would have added true value. We have focused on equity/mezzanine capital for the oil and gas industry because we believe there is a huge need for this type of capital.”
In his presentation at the same event, Tarica Mpinga of Cannacord Genuity highlighted the stages of financing for oil and gas companies.
He said “Nigeria will play a bigger role in oil and gas development for Africa.”
Speaking further, Mpinga highlighted the importance of player’s conservatively planning and mapping projections so that investors can clearly see and identify a trail for progress.
Sanmi Famuyide, head of Origination and Client Coverage for FBN Capital, who moderated the session, touched on FBN Capital’s role in making these opportunities real for indigenous companies. “It is
important that companies are advised on how and when to efficiently utilise resources and specialists, such as lawyers and consultants, that will facilitate their success in raising equity or mezzanine capital within the oil and gas sector,” Famuyide said.
FBN Capital Limited is the investment banking and asset management subsidiary of FBN Holdings Plc, which hosted its maiden Oil and Gas Roundtable in Lagos, aimed at facilitating discussion between investors, influencers, and other key stakeholders within the industry on ways an indigenous exploration and production (E&P) company can raise finance and develop into a more substantial business.
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