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As of press time, neither Shell nor any of the
Nigerian firms named by Reuters’ sources had
commented on the matter. The multi-national
will be accepting bids for the SPDC stake until
January 31.
It remains to be seen whether any of the
Nigerian independents named above will be
able to mount a successful bid. One possible
obstacle, Reuters’ sources commented, is that
SPDC’s majority shareholder, state-owned
Nigerian National Petroleum Corp. (NNPC)
has the right to pre-empt Shell’s planned sale and
still has time to do so. Additionally, they noted,
the bidders will have to overcome the obstacle
of proving their ability to handle the extensive
damage sustained by oil and gas industry in the
Niger River Delta.
Furthermore, the sources said, the Nigerian
firms may not have an easy time financing a Shell assets in southern Nigeria (Image: Shell)
$2-3bn acquisition, given that many Western
banks are now shying away from involvement working to secure the necessary financing. It
in oil-related transactions. They also pointed said it had seen documents and sources indicat-
out, though, that a number of Asian and Afri- ing that the Nigerian company had hired Africa
can banks were still extending credits for fossil Bridge Capital Management to raise as much as
fuel deals. $3bn for the SPDC stake. As of press time, the
Reuters, meanwhile, reported last week that Nigeria-focused financial advisory firm had not
Troilus Investments already appeared to be commented on the report. ™

Eco Atlantic aims to acquire fields in South

Africa, Namibia under MoU with Azinam

NAMIBIA/SOUTH AFRICA UK-BASED Eco (Atlantic) Oil & Gas revealed
earlier this week that it was looking to acquire
new assets offshore Namibia and South Africa
under a deal with Azinam Group, an affiliate of
Bermuda-registered Seacrest Capital Group.
In a statement, Eco Atlantic reported that it
had signed a memorandum of understanding
(MoU) with Azinam on the acquisition. The
document provides for the former company to
acquire 100% of shares in the latter, including the
latter’s entire portfolio of assets, after which Azi-
nam will take a stake of 16.65% in the expanded
Eco Atlantic. The parties hope to complete the
takeover process by the end of this month.
The company did not comment on the value Block 3B/4B is one of Azinam’s assets offshore South Africa (Image: Azinam)
of the proposed transaction. However, it did
note that the parties intended to execute the deal It listed Azinam’s South African assets as a
without exchanging cash or any other form of 50% stake in and operatorship of Block 2B, plus
money. “Pursuant to the MoU and subject, inter a 20% non-operating stake in the 3B/4B block.
alia, to the signing of a binding share purchase Both offshore sites lie within the Orange basin,
agreement and completion of the acquisition, with Block 2B in a shallow section where waters
Eco Atlantic will issue to the vendor such num- range from 50 to 200 metres deep and Block
ber of new common shares in Eco as provides 3B/4B covering a far wider expanse, with waters
the vendor with 16.65% of Eco’s share capital as from 300 to 2,500 metres deep. Block 3B/4B is
enlarged by such issue, providing for a cashless operated by Africa Oil Corp. (Canada), and Eco
acquisition to become the sole owner of Azi- Atlantic expects the acquisition to strengthen its
nam’s entire African portfolio,” it explained. own partnership with that company.

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