African buyout firm Emerging Capital Partners has invested $35 million (€24 million) in Nigerian holding company Ocean Oil & Investments, which in turn owns a 32 percent stake in Nigeria’s largest oil and gas company, Oando.
“As the largest indigenous company in the market, Oando is poised to capitalise on many opportunities in the market as the Nigerian government seeks to increase the involvement of local companies in the country’s oil and gas sector,” ECP chief executive Tom Gibian said in a statement.
ECP also said the company stands to benefit from market expansion and decreasing industry regulation.
The investment is ECP’s fifth in the African oil and gas sector. Its past deals include investments in Artumas Group, which has operations in Tanzania and Mozambique, in April 2007, Kosan Crisplant Cameroon in November 2005, PanAfrican Energy in December 2000 and Petroci/ Foxtrot in May 1999, which has operations in the Cote D’Ivoire.
The firm was the first to raise more than $1 billion for investment across the African continent, following the close of its most recent fund on $523 million in June. The fund is already more than 80 percent invested.
South African firm Pamodzi Investment Holdings surpassed ECP's record in August with the close of a $1.3 billion fund for South Africa and the sub-Saharan region.