Julius Berger Nigeria Plc (JBN) has indicated its intention of diversifying into the oil and gas industry through a notice sent to the Nigerian Stock Exchange (NSE) by the company which stated that it had entered into a strategic partnership and joint investment agreement with Petrolan Energy Limited to develop oil fields, Leadership reports.
JBN said the partnership is for the acquisition and development of oil fields in Nigeria. The company said that the alliance is in line with its strategic goal to diversify into the oil and gas sector. Analysts noted that for the construction firm, the move is a strategic one as competition from Chinese firms have made the construction industry less attractive. Furthermore, debts owed by the federal government have also hampered its operations.
According to THIS DAY, Petrolan Energy Limited is a Nigerian upstream energy company, established to acquire, develop, operate and finance hydrocarbon assets in the Nigerian oil and gas sector, and has Mr. Mutiu Sunmonu, as its chairman. The former managing director of Shell Petroleum Development Company, is also the current chairman of JBN. The company said that it would provide further details to the capital market community as the transaction progresses.