Koral Energy Acquires FPU For Ebok Field And O&M Contract From Mercato

Koral Energy Acquires FPU For Ebok Field And O&M Contract From Mercato

Koral Energy International Limited (“Koral”) headquartered in Mauritius and focused on the African energy sector, today announces the acquisition of a Floating Production Unit (FPU) and the associated O&M contract from Singapore based Mercator. The acquisition marks the company’s first strategic investment in Africa’s energy sector.

Koral was established in Mauritius to leverage emerging opportunities in Africa’s energy industry, with an initial focus on Nigeria. The company recognised that in a low oil price environment, and with a broad need for industry and financial re-structuring, its ability to bring financial expertise to support the industry would be attractive to a range of existing asset owners. With both asset owners and service providers under pricing pressure, and disruption to production following a period of instability in the region, demand for investors willing to provide both equity and innovative financing structures is high.

Late in 2016, Koral entered into discussions with Mercator, who were seeking to re-structure operations globally, and were able to design a financial solution that delivers on-going cash flows for Koral while delivering value to Mercator for their asset. Koral successfully managed negotiations with Mercator, its client, Oriental Energy Resources and financial partners across multiple jurisdictions to design and implement a creative and sustainable financial solution for the benefit of all involved.

Following the acquisition, Koral is focused on investing in the FPU to enhance service delivery to the Ebok field offshore Akwa Ibom in Nigeria’s Niger Delta and to further increasing production operations.

Commenting on the acquisition, Koral Managing Director Patrick Vallette D’Osia said:

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