Our business model
We develop, own, operate and invest in oil and gas midstream infrastructure across the African continent.
Our business model is specifically built around the following core principles:
- We develop, own, operate and invest in midstream oil and gas infrastructure
- Our infrastructure assets derive revenue from throughput and/or on storage tariffs, with a preference for long-term take-or-pay contract structures
- We do not own any of the commodities that we handle nor position ourselves as the off-taker of the commodities but offer use of our infrastructure and services on an open-access basis
- In partnering with world-class providers of services and expertise, we match the interests of investors with those of societies, governments, communities and employees by developing and running wealth-creating, durable oil and gas infrastructure
- We are a part of a large dynamic group whose members are committed to broad-based, sustainable value creation and development, good governance and accountability.
CAPITAL AND RISK ALLOCATION
Given the large capital deployed to each asset and the long-term nature of our investments, we allocate capital across different jurisdictions with a risk-centric approach. We also want to build a portfolio that has an optimal balance between greenfield (both development and construction stage) and brownfield assets to balance value creation for our shareholders through growth and a sustainable yield. We have a preference for long-term contracted revenues or assets with a captive market with high barriers to entry.
Geographic diversification: We look to build an attractive portfolio of assets by diversifying geographically to manage country risk.
Optimal stage allocation: Developing and acquiring operating and yielding assets forms an integral part of our strategy to deliver value to our shareholders both through organic growth and yield.
Contracted revenues: We pursue robust and medium-to-long term contracts with customers with strong balance sheets or assets with a captive market with high barriers to entry in order to limit market risk exposure.