The Chairman of Nigerian Shoreline Energy Kola Karim has confirmed his company has no plans to access the international markets for bonds until oil price rises to about $60 per barrel and unrest in the Niger Delta reduces.
According to Karim, Shoreline has in the alternative focussed on increasing its pre-finance activities as a source for funding its operations. Pre-financing basically involves getting buyers to pay in advance for products (in some cases interest inclusive) with a promise to pay the balance once the product is delivered.
Shoreline is also looking at expanding into domestic gas where it has an estimated 2.5 trillion cubic feet of gas in the ground. According to Reuters, it recently secured the Gasland concession, which will allow them to distribute and sell gas to homes and businesses on the islands in the capital of Lagos.
Shoreline Energy is a privately owned company registered in Nigeria.
Source: UPDATE 2-Nigeria’s Shoreline won’t issue eurobonds until oil above $60 -Chairman
