Consolidated Infrastructure Group Ltd (CIL) has announced it has purchased a 30.5 per cent stake in Angola Environmental Servicos Limitada (AES) for US$15.3mn
The company claimed that its recent acquisition would place it in a prime position to take advantage of the increased demand for AES’s oil and gas waste management service.
CIL said the increase in demand for waste management services had developed recently due to the oil industry picking up in Angola.
The company noted, “The number of oil rigs operating offshore in Angola will increase significantly over the next few years.
“Changes to environmental legislation enacted in July 2012 will significantly enhance AES’s business,” it added.
Business for AES in 2011 has been substantial, with the company recording year-end sales of US$42.6mn.
Angola is the second largest oil producer in Africa, coming second only to Nigeria and its two million barrel per day (bopd) output rate. Angola’s average daily production for 2011 was 1.75mn bopd, accounting for 2.13 per cent of the world’s total crude production.
In BP’s 2012 Statistical Energy Survey, Angola was estimated to contain 13.5bn barrels (bbl) of oil reserves. With large oil corporations increasingly flocking to the country to get a place on the Angolan oil market it is likely that environmentally-aware waste management companies will also be in great demand, CIL claimed.
CIL shares spiked following the announcement, increasing 2.5 per cent to their highest level in five years, trading at US$1.64 (R14.55).
