Oando PLC Announces Completion of Sale of East Horizon Gas Company to Seven Energy International Limited
Oando PLC has announced that it has completed the sale of the entire issued share capital of one of its wholly owned subsidiaries, East Horizon Gas Company Limited (“EHGC”) to Seven Energy International Limited (“Seven Energy”) for a total gross consideration (the “Consideration”) of up to US$250 Million.
The Consideration is broken down as follows:
i. An initial payment of US$100 Million in cash;
ii. The assumption by Seven Energy of existing liabilities of EHGC, including approximately US$62 Million of bank indebtedness; and
iii. The balance in deferred payments due on achievement of certain operational and contractual conditions. It is expected that these conditions will be satisfied during the course of 2014.
EHGC is a special purpose vehicle operating a 128km, 120mmscfd, 18-inch natural gas transmission and distribution pipeline traversing the Akwa Ibom and Cross River States. EHGC also has a gas sales agreement to supply up to 25 mmscfpd, increasing to 50 mmscfpd in 2016, under a 20 year “take-or-pay” agreement expiring in 2032