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

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.

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