Forte Oil sells stake to Mercuria Energy Holdings

Oil Barrels Ian Burt FlickrForte Oil will use the money raised in the downstream sector, upstream services, power generation and upstream exploration. (Image source: Ian Burt/Flickr)Mercuria Energy Holdings SA (Mercuria) has acquired 17 per cent equity stake in Nigeria’s Forte Oil plc (Forte Oil) for US$200mn

Forte Oil has said that it will use the money gained from the stake sale as additional working capital for operations in the downstream sector, upstream services, power generation and upstream exploration, to continue in its bid to become a premier integrated energy solutions provider in Nigeria.

“Mercuria is joining forces with Forte Oil at an auspicious time when equitable funding and expertise is needed to expand and intensify its market penetration to give the company the leverage to further create a positive impact for all shareholders,” said Forte Oil in a statement.

Forte Oil is Africa’s largest oil marketing company, in terms of retail network and market capitalisation. It has more than 500 company-owned and dealer-assisted gas stations spread across Nigeria. The company also owns oil storage depots and has investments in power generation.

Switzerland-based oil trading firm Mercuria acquired the shares from Femi Otedola, a Nigerian billionaire who is the chairman and controlling shareholder of Forte Oil. The firm has 38 offices in 27 countries, employs more than 1,000 people and trades in more than 50 countries. Its core business is sourcing, supplying and trading crude oil and refined petroleum products, and the firm has also expanded its portfolio to include petrochemicals, biofuels, natural gas and LNG and a range of other products.

The investment has been approved by the Nigerian Stock Exchange and the Securities and Exchange Commission.

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