Construction giant, Julius Berger Nigeria Plc. has announced its diversification into the oil and gas industry.
The intention of the company was conveyed via a notification letter sent to the Nigerian Stock Exchange (NSE) by signed by the company secretary, Mrs C. Madueke, stated Julius Berger Nigeria intention of going into partnership with Petralon energy an oil and gas firm with intention to develop oil fields.
JBN said the partnership is for the acquisition and development of oil fields in Nigeria. According to the company, the alliance is in line with its strategic goal to diversify into oil and gas sector.
Petrolan Energy Limited, a Nigerian upstream energy company, established to acquire, develop, operate and finance hydrocarbon assets in the Nigerian oil and gas sector, has Mr. Mutiu Sunmonu, as its chairman. The former managing director of Shell Petroleum Development Company, is also the current chairman of JBN.
The JBN decision might not be unconnected with the unfavourable business climate in the construction industry with the federal government signing of a $5.1 billion contract with the China Civil Engineering Construction Corporation (CCECC) for construction and rehabilitation of railway lines across the country and the billions of naira being owed by the government.
Julius Berger was established in 1950 and is one of Nigeria’s oldest construction companies.
