Vitol Pulls out of $1.5bn Deal to Buy Nigerian Oil Fields

Oil trader, Vitol, has quit a consortium that was set to buy a stake in two Nigerian oil fields from Brazil’s Petrobras  its former partner said at the weekend.

Africa Oil said it would conclude the $1.5 billion purchase alone after Vitol and Delonex Energy pulled out of the deal to buy half of Petrobras Oil and Gas, known as Petrobras Africa, from the Brazilian company.

“We remain committed to completing this acquisition and look forward to working with Petrobras and all stakeholders to accomplish that goal,” Chief Executive of Vancouver-based Africa Oil, Keith Hill, said in a statement.

Africa Oil said the deal will go ahead under the previously agreed terms.

It has agreed a $250 million loan facility with BTG Pactual and will fund the rest with available cash.

BTG, Brazil’s largest independent investment bank, owns the other 50 per cent stake in Petrobras Africa, whose core assets are stakes in offshore fields that produce Nigerian oil grades Agbami, Egina and Akpo.

Reuters reported that Vitol did not issue a statement on the withdrawal.

A source close to Vitol said the deal was taking too long to close, including the wait for necessary clearances from Brazilian and Nigerian governments.