In a bid to double its crude output Shoreline Group has agreed a $530 million finance deal with Vitol Group and local lenders. Shoreline will seek to boost production to between 80,000 and 100,000 barrels a day this year.
The agreement with Shoreline will provide the company with cash to refinance existing debt and further develop OML 30 in Niger-Delta region.
Chief Executive Officer, Kola Karim said,
“The funds will be used to refinance existing debt and provide us with working capital to expand production,”
“As part of the funding arrangements, Shoreline will work with Vitol to market the crude, and in the development of its export logistics capabilities.”
Besides Vitol, the world’s biggest independent oil trader, Farallon Capital Management LLC, and lenders Ecobank Transnational Inc., Fidelity Bank Plc, Union Bank Plc and FCMB Group Plc will provide the financing.
Shoreline, also holds an estimated 1 billion barrels in crude reserves, also produces 100 million standard cubic feet a day of gas. The company plans to increase that to about 500 million standard cubic feet a day.
Vitol Group is a global energy and commodity trading company that was founded in Rotterdam in 1966 by Henk Viëtor and Jacques Detiger. Though physical trading, logistics, and distribution are at the core of the business, these are complemented by refining, shipping, terminals, power, exploration, and production.
Shoreline Power Company Limited is an indigenous power solutions company with Power Generation and Power equipment manufacturing activities, Shoreline Infrastructure & Engineering: Shoreline is building a platform to create integrated infrastructure and energy project delivery through organic growth partnership.
Shoreline is one of several Nigerian producers that bought fields in the oil-rich Niger-Delta after international producers including Royal Dutch Shell withdrew amid persistent attacks on infrastructure. The company didn’t pump oil for a year following the closure of the Forcados terminal in February 2016. Flows resumed after the link was reopened in June last year.