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Investors Earn First Income From Lagos Oil Sale

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  • Investors Earn First Income From Lagos Oil Sale

Following the sale of the first oil production from Aje field, partners in the Oil Mining Lease 113 offshore Lagos, where the field is located, have earned their first income.

A top official of one of the partners disclosed this in a telephone interview with our correspondent on Wednesday, saying the second sale would be done before the end of the year.

The Aje field, which was discovered 25 years ago, achieved its first oil five months ago.

A London-based energy firm, MX Oil, one of the partners, on Wednesday, said it had received $1.2m from the sale of the first oil production.

The AIM-quoted oil and gas investing company said in an update on its website that the money was received by the PR Oil and Gas Limited, the holder of its investment in the OML 113.

Yinka Folawiyo Petroleum Company Limited, a wholly-owned indigenous firm and operator of the OML 113, had on May 3 announced the commencement of crude oil production on the field.

Other partners are New Age Exploration Nigeria Limited, EER (Colobus) Nigeria Limited, Pan Petroleum (Panoro Energy) Aje Limited and PR Oil & Gas Nigeria Limited.

Panoro Energy, an independent exploration and production company with assets in Nigeria and Gabon, had in July said several international oil companies and trading houses had expressed interest in purchasing the crude produced from the Aje field.

The company, in its half year and second quarter report 2016 released in August, said the Nigerian regulators had approved the production and export sale from Aje.

It had said the first cargo of Aje crude should be lifted in September and Glencore Energy UK Limited was selected for its offtake.

Panoro said the average gross daily production at Aje, calculated from the first oil in May until mid-August, had been 5,500 barrels, which included the entire testing, commissioning, and approval period completed in mid-July.

The Chief Executive Officer, MX Oil, Stefan Olivier, on Wednesday, said, “We are very pleased to announce that the first oil production from the Aje field has been sold and that we have now received our first income from our investment in the OML 113.”

The Chief Executive Officer, Panoro Energy, John Hamilton, who described the achievement of oil production at Aje as a milestone for the company, said the sale of the first cargo of oil during September represented the start of positive cash inflows from the Aje project.

Aje is an offshore field located in the OML 113 in the western part of Nigeria in the Dahomey Basin. The field is situated in water depths ranging from 100 to 1,000 metres and is about 24 kilometres from the coast. It contains hydrocarbon resources in sandstone reservoirs in three main levels – a Turonian gas condensate reservoir, a Cenomanian oil reservoir and an Albian gas condensate reservoir.

The joint venture partners had in October 2014 taken the final investment decision to develop the first phase of the field.

They submitted the Field Development Plan to the Department of Petroleum Resources in January 2014 and it was approved in March, with the first oil expected late in 2015.

Yinka Folawiyo Petroleum was granted the Oil Prospecting Licence 309 in June 1991 as a sole risk contract under the Federal Government’s Indigenous Allocation Programme, which was put in place to encourage the development of a locally-owned and operated Nigerian upstream oil industry.

The company said, following the acquisition of 2D seismic data in 1994/95, and the drilling of the Aje-1 well in 1996, the field was discovered, adding that a second well, Aje-2, was drilled in 1997.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Young or Old: Put a Plan in Place for Your Loved Ones Today – FBNQuest

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FBNquest - Investors King

In our fast-paced world, the average person is consumed with how to improve and sustain their quality of life. Little attention is paid to what happens when they become incapacitated or pass away. For some people, the thought about  putting structures in place only takes place at the tail end of their adult life.

If this sounds a lot like you, consider putting a plan in place as soon as possible. The two primary ways to make the transmission of your assets seamless is through a written Will or the use of a Trust. A Will is a legal document that captures your wishes and the distribution of your assets. It clearly outlines who should take on the responsibility of managing your assets until they are distributed. With a Trust, a Trustee is appointed in your life time to hold and manage your assets on your behalf for your beneficiaries.

When a Will or Trust is not in place prior to your demise, a lot of paperwork is often needed to fix the process of transfer to a beneficiary. This will obviously impact traditional assets such as bank deposits, retirement savings with a pension fund administrator, stock holdings, real estate and other physical or financial assets. The process of transferring these assets could take months and even years simply because the person did not have a Will or Trust in place.

Applicable taxes on assets not stated in a Will may also lead to a reduction in the value of the original asset being transferred to a beneficiary. In addition, the rise in the use of digital platforms means that if you fail to create and keep such records with a Corporate Trustee for safe keeping, online accounts and passwords that are not recorded securely could become inaccessible after your demise. It is therefore possible that some assets that you own may be lost forever.

FBNQuest offers you the opportunity to put your house in order and make life easier for your beneficiaries. We are happy to advise you on how to draft a Will and put you in touch with realities that can make the process seamless and efficient. We also assist with structuring your Trust arrangements with the use of the Trust Deed in line with your wishes.

Single, married, young or old –  You probably have assets that you would like to pass on to people or organizations that mean a lot to you. It takes careful planning to ensure that your intention to gift these assets are properly executed.

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Qatar Investment Authority (QIA) Plans to Invest $200 Million in Airtel Africa’s Mobile Money Business

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Airtel Africa Plc - Investors King

Airtel Africa has signed an agreement with under which Qatar Holding LLC, an affiliate of the Qatar Investment Authority (QIA), plans to invest $200 million in Airtel Mobile Commerce BV (“AMC BV”), a subsidiary of Airtel Africa plc (the “Transaction”).

The Transaction values Airtel Africa’s mobile money business at $2.65 billion on a cash and debt free basis. QIA will hold a minority stake in AMC BV upon completion of the Transaction (alongside other minority investors), with Airtel Africa continuing to hold the majority stake. The Transaction is subject to customary closing conditions.

Following the announcement on 18 March 2021 of a $200m investment in AMC BV by TPG’s The Rise Fund, on 1 April 2021 of a $100m investment in AMC BV by MasterCard and the sale of the Group’s telecommunication towers companies in Madagascar and Malawi on 23 March 2021, the Transaction is a continuation of the Group’s pursuit of strategic asset monetization and investment opportunities, and it is the aim of Airtel Africa to explore the potential listing of the mobile money business within four years.

The proceeds from the Transaction will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries.

Airtel Africa mobile money services

Operating under the Airtel Money brand, Airtel Africa’s mobile money services is a leading digital mobile financial services platform catering to a large addressable market in Africa (characterised by limited access to formal financial institutions with limited banking infrastructure) and includes mobile wallet deposit and withdrawals, merchant and commercial payments, benefits transfers, loans and savings, virtual card and international money transfers.

Mobile money services are available across the Group’s 14 countries of operation, however in Nigeria the Group offers Airtel Money services through a partnership with a local bank and has applied for its own mobile banking licence. It is the intention that all mobile money operations will be owned and operated by AMC BV.

In our most recent reported results for Q1’22, the mobile money services (corresponding to all the businesses that are intended to be transferred to AMC BV) delivered a strong operational
performance:

 Generated revenue of $124m ($496m annualised), and underlying EBITDA of $60m ($240m annualised) at a margin of 48.8%.
 Year on year revenue growth for the quarter was 53.7% in constant currency, largely driven by 24.6% growth in the customer base to 23.1 million, and 25.4% ARPU growth.
 Growth in transaction value was 64.4% (constant currency) to $14.7bn ($59bn annualised).

Our mobile money business benefits from strong network presence with our core telecom business through the extensive distribution platform of kiosks and mini shops as well as dedicated Airtel Money
branches supplementing our extensive agent network, to facilitate customers’ access to assured wallet and cash.

We have a clear strategy to continue to drive sustainable long-term growth in Airtel Money with a focus on assured float availability, distribution expansion and increased usage cases for our customers.

Last year we added partnerships with Mastercard, Samsung, Asante, Standard Chartered Bank, MoneyGram, Mukuru and WorldRemit to expand both the range and depth of the Airtel Money offerings and to further drive customer growth and penetration.

The profits before tax in the full year ending 31 March 2021 and the value of gross assets as of that date, attributable to the mobile money businesses were $185m and $668m, respectively.

Key elements of the Transaction

 Agreement values Airtel Africa’s mobile money business at $2.65bn on a cash and debt free basis.

 AMC BV, a subsidiary of Airtel Africa, is the holding company for several of Airtel Africa’s mobile money operations; and it is intended that ultimately it shall own and operate the mobile
money businesses across all of Airtel Africa’s fourteen operating countries once the inclusion of the remaining mobile money operations under AMC BV perimeter is completed.

 QIA will invest $200m through a secondary purchase of shares in AMC BV from Airtel Africa. The transaction will close in two stages: $150m will be invested at first close, subject to customary closing conditions, including necessary regulatory filings, with $50m to be invested at second close once further transfers of certain mobile money operations and contracts into the AMC BV perimeter have been completed.

The Transaction first close is expected in August. From first close, QIA will be entitled to appoint a director to the board of AMC BV and to certain customary information and minority protection rights.

Comment on the deal, Raghunath Mandava, CEO of Airtel Africa, said “With today’s announcement we are pleased to welcome QIA as a prospective investor in our mobile money business, joining both Mastercard and TPG’s The Rise Fund as a further partner to help us realise the full potential from the substantial opportunity to bank the unbanked across Africa.”

Mansoor bin Ebrahim Al-Mahmoud, CEO of QIA, added that “We are delighted to build on our support of Airtel Africa in promoting financial inclusion to the large and growing population of Sub-Saharan Africa. Airtel Money plays a critical role in facilitating economic activity, including for customers without access to traditional financial services. We firmly believe in its mission to expand these efforts over the coming years.”

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West and Central Africa’s Investment Environment and Infrastructure Opportunities in Spotlight

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Paris - Investors King

A new focus report produced by Oxford Business Group (OBG), in partnership with the international brokerage network Groupe Ascoma, will explore the increased focus on compliance, transparency and ethical practices in the West and Central African markets as the region looks to attract investment for its economic development.

Titled “Governance, Risk and Compliance in West and Central Africa”, the focus report will provide in-depth analysis of key issues relating to insurance and reinsurance, against the broader regional socio-economic landscape, in an easy-to-navigate and accessible format, featuring essential data and infographics.

The report will shine a spotlight on the way that doing business is evolving across the region’s economies at a time when ECOWAS members are keen to source funding for a vast range of intra-continental and domestic infrastructure projects.

Subscribers will find detailed coverage of the key role that private sector players such as Ascoma are expected to play in driving change and instilling a culture of insurance and reinsurance across business communities by identifying risks common to the region and providing effective, tailored solutions to them.

The report will examine specific areas of the economy in which governance, risk and compliance (GRC) principles are being given added weight, including energy, infrastructure, mining and the financial services industry.

It will also include an in-depth interview with Farid Chedid, CEO and Chairman, Groupe Ascoma, in which he explains how GRC dynamics are helping the company achieve its objectives, while supporting the region’s bid to make future economic growth sustainable. “Ascoma is committed to the economic and infrastructure development of Africa, and applying Global, Risk and Compliance principles is essential for our operations, not only in the continent but also in the Middle East and the rest of the world. Transparency, compliance, and business ethics are top priorities for us in the moment of investing in any country”. Commenting ahead of the signing of a Memorandum of Understanding for the report, Bernardo Bruzzone, OBG’s Regional Editor for Africa, said that the new report with Ascoma was timely, given the added importance that both corporations and governments are attaching to GRC principles.

“Business environments are changing globally on the back of new requirements from investors, with tighter regulations and greater transparency,” Bruzzone said. “Our research with Ascoma will plot the GRC trends that are gaining momentum regionally, while also highlighting the positive impact they could have on West and Central Africa’s potential as an investment destination.”

“Governance Risk and Compliance in West and Central Africa” will form part of a series of tailored reports which OBG is currently producing with its partners, alongside other highly relevant, go-to research tools, including a range of country-specific Growth and Recovery Outlook articles and interviews.

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