Seven Energy, the Nigerian Oil and Gas company which counts several private equity, sovereign wealth and DFI funds among its investors, has landed an additional $100 million in equity capital from some of its existing investors as well as the Islamic Development Bank’s Infrastructure Fund II, a $2 billion private equity infrastructure fund managed by Bahrain-based ASMA Capital. As part of the deal, ASMA’s CEO, Stephen Vineburg, joins Seven Energy’s Board of Directors.
IDB Fund II is investing $50 million in the deal while the balance is being provided by a group of the Nigerian company’s existing shareholders including Temasek, Petrofac, Capital International Private Equity, Standard Chartered, the International Finance Corporation and the IFC’s Africa, Latin American and Caribbean Fund. The fresh capital will be used to enhance Seven Energy’s liquidity as it completes work on a gas pipeline that will integrate its existing pipeline in the south east of Nigeria over the next few months.
Once the project is completed, Seven Energy will be the owner/operator of a gas pipeline network that stretches from Ukanafun and Ikot Abasi in the country’s west to Calabar in the east, capable of handling 600 million standard cubic feet per day (MMcfpd). The volume of the company’s gas deliveries trebled in 2015, and it is now delivering in excess of 110 million MMcfpd to clients that include the power stations at Alaoji, Calabar and Ibom, a cement plant and a fertilizer factory. As commissioning work and electricity transmission infrastructure projects at the three power stations are completed, the company expects delivery volumes to almost double to 200 million MMcfpd by the end of 2016.
Seven Energy was founded in 2004 and has offices in Lagos and London. Since then, the company has invested more than $1 billion in gas production, processing and distribution infrastructure assets.