Yemisi Izuora
SacOil has entered into a joint venture with Energy Equity Resources (EER) to facilitate the acquisition and resale of Nigerian crude oil.
This, as the Nigerian National Petroleum Corporation (NNPC) awarded SacOil and EER a 12-month contract for the purchase of crude oil grades, SacOil said in a statement.
The joint venture company, SacOil Energy Equity Resources (SEER), will act as the contracting party to an agreement with the NNPC for the purchase and onward sale of Nigerian crude oil. SEER’s offtake levels will depend on the aggregate crude production in Nigeria as well as the global oil price.
Thabo Kgogo, CEO of SacOil, said the agreement is in line with the company’s strategy to focus on “cash generative, income producing activities in both upstream, refining and downstream”.
“Nigeria is a prolific hydrocarbon nation and the largest exporter of crude oil on the African continent. We are pleased to have secured this crude allocation for trading as it provides us with a structured and measured exposure to this attractive market,” he said.
SacOil said it will use revenue generated from the sale of its Nigerian crude oil allocation to support its growth and investment strategy across the African continent.
It has also signed a memorandum of understanding with EER to explore investment opportunities, aligned with the NNPC’s business activities in the country’s oil and gas sector. It said a number of opportunities, available in the current economic climate, which could provide “sustainable” returns are being evaluated.