Petrogress Int’l, LLC (PIL), the subsidiary of Petrogress, Inc. has signed a Memorandum of Understanding and a Partnership Agreement with A&E Petroleum Co. Limited, a Nigerian corporation (A&E Petroleum).
With this, they will jointly form and co-operate a corporation to be named P&A Nigeria Oil Co. Ltd. (PANOC) to engage in fuel business opportunities in Nigeria. Supply, sea transportation, distribution and sale of fuel and other fuel products, including crude oil originated in Nigeria, storage tank facilities, are the operations that PANOC is expected to engage in.
The current owner and operator of the storage tank facilities to be operated by PANOC is A&E Petroleum. PIL and A&E Petroleum is anticipated by the Partnership Agreement to contribute to the capital and own 55% and 45% of PANOC, respectively. In order to facilitate the transportation of fuel products to the Nigerian storage tanks and facilitate the purchase sale and distribution of such products, PANOC is expected to lease or charter freight motor tankers and barges.
Petrogress plans to seek fundingof up to $5 million to facilitate planned capital requirements, to extend the proposed business of PANOC.
Petrogress Chief Executive Officer Christos P. Traios, said “Our partnership with A&E Petroleum is an excellent opportunity for Petrogress to expand its operations into and serve the Nigerian market. Our companies’ combined facilities, assets and services are not only expected to provide for enhanced revenue streams, but also ensure our future in this important international market.” Source: Energy Mix Report PWKD19022018