Oil and gas producer San Leon Energy said it would invest $15m in Energy Link Infrastructure, the owner of the Alternative Crude Oil Evacuation System project in Nigeria.
Nigeria-focused Energy firm will stump up $15 million as a loan to secure the completion of the Alternative Crude Oil Evacuation System (ACOES), for exports from its OML 18.
Energy Link Infrastructure (Malta) is building the link. This 100,000 barrel per day pipe will connect OML 18 to a floating, storage and offloading (FSO) vessel.
Crucially, companies transporting crude via the new ACOES link expect transmission losses to be reduced.
The project is being constructed to provide a dedicated oil export route from the OML 18 asset, comprising a new pipeline from OML 18 and a floating storage and offloading vessel.
The investment comprised a 10 per cent equity interest in Energy Link Infrastructure together with a $15m shareholder loan at a coupon of 14 per cent per annum over four years.
Funds would be provided in two tranches with the first $10m being made by San Leon this week.
The second tranche of $5m was expected to be made in the fourth quarter of 2020 following receipt from Midwestern Leon Petroleum of the next repayment of loan notes due at that time.