Rainoil acquires majority stake in Eterna

Rainoil Limited has made a significant move in the Nigerian energy market by acquiring a majority stake in Eterna Plc, a publicly listed oil and gas company. This acquisition comes eight months after Eterna issued a public statement regarding negotiations to sell equity holdings in the company to substantial shareholders. With the acquisition of over 794 million shares, Rainoil is set to broaden its presence across the oil and gas value chain in Nigeria. Godrey Ogbechie, the Group Executive Director of Rainoil Limited, recently discussed the acquisition and the company's expansion plans in an interview with CNBC Africa. Ogbechie highlighted the strategic value that Rainoil sees in Eterna, emphasizing the need to scale up operations and capitalize on emerging opportunities in the energy sector. With the industry undergoing significant transitions, Rainoil aims to position itself as a leading energy products company, moving beyond organic growth to take on a more prominent role in the market. The acquisition of Eterna aligns with Rainoil's vision to establish itself as a key player in the Nigerian energy industry. Looking ahead, Ogbechie outlined the expansion plans following the majority stake acquisition. One key focus area is the development of Eterna's gas operations, tapping into the burgeoning gas market in Nigeria. Additionally, Rainoil plans to leverage opportunities in the lubricant market to enhance its offerings. The ultimate goal is to transform both companies into a formidable energy services provider in Nigeria and across the continent. As Nigeria embarks on an energy transition, marked by initiatives like the Federal Government's Decade of Gas program and the recent implementation of the Petroleum Industry Act, Ogbechie discussed how Rainoil is aligning its strategies with these national reforms. He emphasized the importance of gas in the country's energy future and highlighted the challenges in the current LPG market, including pricing issues and supply constraints. Rainoil's investments in gas infrastructure, such as an 8000 MT depot in Lagos, signify its commitment to expanding its presence in the gas sector. However, Ogbechie also acknowledged the hurdles faced in the retail end of the gas market, where there is a disconnect between policy and private sector investment. He stressed the need for government intervention to address pricing concerns and enhance access to finance for gas projects. Despite the challenges posed by the dependence on imported gas, he reiterated Rainoil's commitment to supporting the government's efforts to boost gas penetration and drive the success of the Decade of Gas initiative. In conclusion, Rainoil's acquisition of a majority stake in Eterna Plc represents a strategic move to bolster its position in Nigeria's energy market. With a focus on expanding gas operations, penetrating the lubricant market, and aligning with national energy reforms, Rainoil is poised to play a key role in shaping the future of the country's energy sector.