Nigerian Regulator Clears Prime Consolidation: A Step Towards Strengthening Africa Oil Corp

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has given the green light to Africa Oil Corp's (AOI) proposed consolidation of Prime Oil & Gas Coöperatief U.A. (Prime), paving the way for the Canadian oil and gas company to strengthen its operational efficiency and cash flow management. This strategic move, which involves the issuance of common shares to BTG Pactual Oil & Gas S.à r.l., is expected to enhance AOI's upstream oil and gas operations in Nigeria and beyond.

The NUPRC's clearance for the amalgamation is a significant milestone in AOI's growth strategy, as it eliminates the need for ministerial consent and does not amount to a change of control in the beneficial ownership of Prime's Nigerian subsidiaries. This development allows AOI to move forward promptly with the completion of the transaction, which is now expected to be achieved by the end of the first quarter of 2025.

The consolidation of Prime, a collection of deep-water assets offshore Nigeria, enables direct control of cash flows and streamlines business processes, creating a stronger upstream oil and gas company. This move enhances shareholder returns by creating a stronger growth proposition and brings in BTG Pactual as a strategically aligned cornerstone investor, holding approximately 35% of AOI's enlarged share capital.


BTG Pactual's investment in Africa Oil, set to hold approximately 35% of the enlarged share capital post-consolidation, aligns its interests with Africa Oil's growth strategies. This strategic partnership enhances shareholder returns by creating a stronger growth proposition, as noted by Africa Oil CEO Roger Tucker. The consolidation of Prime enables direct control of cash flows and streamlines business processes, contributing to Africa Oil's long-term success.

The involvement of BTG Pactual as a cornerstone investor in Africa Oil's Prime consolidation enhances the company's access to capital and resources for future expansion. With BTG Pactual holding approximately 35% of Africa Oil's enlarged share capital, the investment firm's expertise and financial resources can significantly contribute to Africa Oil's growth strategies. This strategic alignment allows Africa Oil to tap into BTG Pactual's networks and resources, potentially facilitating access to new investment opportunities and partnerships. Additionally, BTG Pactual's involvement may provide Africa Oil with valuable insights into global markets and trends, further bolstering its decision-making capabilities.


The presence of BTG Pactual as a major shareholder in Africa Oil signals a vote of confidence in the company's growth prospects. This strategic alignment can enhance Africa Oil's ability to attract and retain other investors by demonstrating the company's strong fundamentals and potential for shareholder returns. BTG Pactual's involvement may also open doors to new investment opportunities and partnerships, further bolstering Africa Oil's position in the market.

In conclusion, the Nigerian regulator's clearance for the Prime consolidation is a significant step towards strengthening Africa Oil Corp's operational efficiency and cash flow management. The strategic alignment with BTG Pactual as a cornerstone investor enhances shareholder returns and creates a stronger growth proposition, contributing to Africa Oil's long-term success. The involvement of BTG Pactual also enhances Africa Oil's access to capital and resources for future expansion, further bolstering its position in the market. As Africa Oil navigates the remaining regulatory and political hurdles, investors should closely monitor the company's progress and the potential impact on its share price.