Federal Government approves sale of 10% equity stake in EPCL

03-Mar-09

The Federal Government has approved the sale of 10% equity in Eleme Petrochemicals Company Limited (EPCL). Out of this, 7.5% will go to the host communities, 2.5% to EPCL staff, while the government retains a 5% stake. 75% stake had been acquired by Indorama, the core investor, for the sum of US$225 mln in December 2005 while 10% was sold to the Nigerian National Petroleum Corporation (NNPC) for US$30 mln. The National Council on Privatisation (NCP) has tasked its secretariat, the Bureau of Public Enterprises (BPE), to develop and recommend to it, appropriate mechanisms for acquisition and payment for the shares by the beneficiaries. The privatised EPCL, after undergoing a successful maintenance turnaround and revamp, is currently operating at 90% capacity. With this output, the company has acquired a more than 80% market share in Nigeria for HDPE, LLDPE and PP Raffia. Future expansion plans of over US$2 bln by EPCL makes it a strategic investment in downstream petrochemicals sector.