By Nkiruka Nnorom

Niger Delta Exploration and Production Plc, an indigenous oil and gas company, yesterday, unveiled plans to raise $400 million to support its operations and expand production capacity.

Managing Director/CEO, Dr. Layi Fatona, at analysts’ forum and conference in Lagos, said the company intended to raise the capital in tranches.

He noted that the company had already started raising the first tranche of $100 million from local institutional investors and would conclude the offer in the next couple weeks, while the remaining $300 million, which will be by way of public offer, will commence soon after the first tranche.

According to him, the fund raising will enable the company to reposition its operations by increasing its refining capacity from 1,000 barrel per day to 5,000 million barrels per day.

It will also enable the company acquire new assets and capitalize on its gas producing ability.

“As an oil company, our appetite for money is voracious, and three years ago, we ended up in N600 million transactions, buying 45 per cent divested interest of Shell, Total and Agip from one of the oil and gas producing assets, west of the Niger Delta. So, few years ago, we decided that for us to continue this kind of investment, we need very significant wallet and we decided that with the authorization of our shareholders, we will raise some $400 million dollars,” Fatona said.

He noted that the company would spend substantial amount of new capital in expanding its participation in serving domestic gas market, adding that it was already in talks with some companies that have skill set and technology for power generation.

He stated that NDE&P would also negotiate near term, mid-term delivery of more products from diesel to other product ranges, including PMS, and kerosene.

Laying the company’s 2015 results before the analysts, Mr. Deji West, Group Chief Operating Officer, NDE&P Plc, explained that the company recorded 11 per cent decline in revenue from N19.3 billion to N17.2 billion, while the operating expenses grew from N12.7 billion to N19.6 billion, representing g 50 per cent increase.