Maurel & Prom has said that it would reabsorb its former Nigerian unit MPI. This will come as a first step towards tripling in size in order to cope with the impact of a huge plunge in oil prices.
According to the Chief Executive of the energy and exploration company, Jean – Francois Henin, the group would work intensively in the coming weeks to secure another deal with a competitor of its kind.
Furthermore, he said that Maurel & Prom and MPI face a tough macroeconomic environment following a 60 percent drop in oil prices in the last year. They see expansion as the route to better access to financing and greater opportunities for external growth.
Maurel & Prom said the MPI deal, due to be completed in December, would add Nigeria to its operations in Gabon and Tanzania, giving it presence in three key sub-Saharan oil and gas countries. MPI also had a “strong cash position” with no debt, it said. The combined company would have an enterprise value close to $2 billion, the industry’s fourth largest after Tullow Oil , Premier Oil and Genel Energy it added.
