Oil and gas services contractor Willbros Group Inc. on Wednesday said it has sold its Nigerian operations for $155.3 million to Ascot Offshore Nigeria Ltd., an energy services company based in the west African nation
Willbros said it has received $150 million in cash and a note for the balance of the purchase price for shares of WG Nigeria Holdings Ltd., the holding company for the Nigeria assets. However, final proceeds are subject to post-closing adjustments.
The company cautioned that the “many variables” affecting its contracts in Nigeria could result in material adjustments but said it doesn’t expect a loss on the sale. Willbros had bought out certain minority interests for $10.5 million as part of the transaction.
Under the deal, Willbros has agreed to let Ascot use its brand and trademark in Nigeria for a period.
JPMorgan Securities Inc. advised Willbros on the transaction.
Willbros’ exit from Nigeria after 44 years comes amid a rash of violence and kidnappings in that country. More than 100 captives have been taken in Nigeria’s oil-producing region since militants stepped up attacks on Nigeria’s oil industry last year.
Willbros shares fell 15 cents to close at $20.03 on the New York Stock Exchange.