Business Standard: June 11, 2015
New Delhi: Essel Group Middle East, has signed an agreement for acquiring 60 per cent participating interest in the portfolio of African oil and gas exploration projects owned by Simba Energy Inc, a Canadian publicly traded oil and gas company.
The Essel Group ME is a wholly-owned subsidiary of Essel Group India. “Essel Group (Middle East) is pursuing growth by securing strategic resource investments across the globe. It is diversifying into the hydrocarbon sector and this agreement is a significant step towards advancing this strategic initiative,” said a company statement issued Wednesday.
The initial agreement lays the foundation for Essel Group ME to invest in Simba’s portfolio of existing African exploration projects on a farm-in basis.
For enhancing its operation, the firm is also prepared to invest in other minerals in the near future.
“Our strategy of securing a position in the African resources base as instrumental in supporting our future growth plans. Having reviewed the available data on Simba’s blocks along with the surrounding exploration and production success by other major groups, we see a highly undervalued opportunity with strong potential. We did not want to pass up on this opportunity in what is fast becoming a very competitive environment,” said Gagan Goel, Managing Director, Essel Group Middle East.
Additionally, to enhance Essel Group ME’s operation, the firm is prepared to invest in other minerals in the near future.
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