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AFC Invests US$20 Million in Oil & Gas Firm Seven Energy

12 Jan 2010

Lagos 12 January, 2010 - The Africa Finance Corporation (AFC) has made an equity investment of $20 million in Seven Energy, an indigenous oil and gas exploration and production firm focused on the monetisation of Nigeria's discovered but undeveloped gas reserves. The funds are part of a $200 million equity and debt raise by Seven Energy, and will be used for the development of reserves in the rich oil and gas-producing region of Nigeria. This unique transaction is geared towards the domestic use of gas, including power generation and supply to captive industrial clusters.

"The Nigerian gas and midstream sector has largely been undeveloped due to the lack of significant capital necessary to develop the requisite infrastructure," says AFC President and Chief Executive Officer Andrew Alli. "Seven Energy is playing a critical pioneering role in developing this sector, in keeping with the Nigerian government's strategy under the Gas Master Plan. The company's operations are expected to have a significant and positive effect on other key sectors of the Nigerian economy such as power. AFC is pleased to support this effort with the equity investment we are making in the company."

Seven Energy Chairman Phillip Ihenacho welcomed the collaboration with AFC."The gas supply demand imbalance in Nigeria is significant and presents an enormous challenge. As a majority Nigerian-owned company, Seven Energy is committed to addressing this imbalance and to helping the country reap the benefits of its huge gas reserves."

Seven Energy is expected to commence gas production in 2011 and has already committed gas to industrial clients in the Akwa Ibom area. Other international investors in Seven Energy include Investec Private Equity, Capital International, Actis and Standard Chartered Private Equity.

About AFC
AFC is an African-led international financial institution whose mission is to improve regional economies by proactively assisting in the development and financing of infrastructure, industrial and other assets across the African continent. Among other projects it supports, AFC is a lead investor in the US$240 million African-led Main-One submarine fibre optic cable project, which will provide much needed telecommunications capacity in West Africa. It is also the main African participant in a seven-year US$750 million syndicated reserves based lending facility to develop the landmark Ghanaian Jubilee Oil Field - one of West Africa's largest deepwater offshore developments in over a decade.

In other news:

• AFC Annual General Meeting 2010
• AFC Leads the Financing of a Pan-African Submarine Cable System
• AFC's Board Risk and Investment Committee Appoints Taiwo Adeniji as Chief Risk Officer and Portfolio Manager
• AFC-financed Main One Submarine Cable Lands in Ghana
• Africa Finance Corporation and major International banks commit USD 750 mm to develop Ghana's largest offshore Oil Field

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