Petralon Energy Limited (PEL) has announced its decision to offer for subscription, 20% of its equity share capital in Petralon 54 Limited, its wholly-owned subsidiary to Julius Berger Investments Limited (JBIL), a wholly-owned subsidiary of Julius Berger Nigeria Plc.
This decision, however, is subject to regulations, consents and approvals.
This was disclosed in a notification sent by the Julius Berger to the Nigeria Stock Exchangethrough its company Secretary, C. E Madueke.
The Details: Julius Berger Investments Limited said its Board of Directors agreed to the acquisition even though the process would require necessary engagements with stakeholders in the Oil and Gas Sector and receipt of regulatory approvals and consent.
It also added that the investment had been approved by the Ministry of Petroleum Resources but deliberations with key stakeholders were still on going.
The subsidiary also noted that it had sufficient share capital to make the investment operational as the development is in line with Julius Berger’s plans to diversify into the Oil and Gas Sector.
What you should know: PEL’s decision to offer Julius Berger 20% of its share capital in its subsidiary can be linked to a strategic partnership between the energy company and the construction giant far back in 2017. In 2017, Julius Berger aligned with Petralon Energy in a joint investment agreement to acquire and develop oil fields in Nigeria.
The alliance was to help Julius Berger diversify into the Oil and Gas Sector and diversify its revenue streams.