Mike Adenuga Jnr. pens a long inspiring blog post thriller, about his attempt to play in the big leagues of oil & gas with the acquisition of a Chevron asset in Netherlands.
Billionaire son Mike Adenuga Jnr. has published a long post detailing how he took on international oil companies in a bid to buy Chevron Netherlands.
The business thriller story titled: “A lion in the North sea: The battle for Chevron Netherlands” on his wordpress blog, starts with how he left his father’s business empire to strike it rich on his own. He came up a ‘trojan horse’ idea of acquiring a foreign oil exploration and production firm and market it to African oil majors in Angola, Equitorial Guinea and Nigeria, as a technical partner.
Though, only 29 at the time, he had acquired experience serving in the capacity of group executive director at his father’s oil firm ConOil, and overseen ConOil Producing’s $1.3 billion successful bid for Shell Nigeria’s OML 30 oil block.
He was armed and ready to go.
Trojan Horse
He wrote: “Most of the oil producing nations in sub-Saharan Africa such as Nigeria, Angola, and Equatorial Guinea would always require any investor into oil & gas assets in their country to either be an oil & gas operator with production on stream or be partnered with an operator, deemed a “technical partner”. This logic makes sense. If you are going to buy prized national assets, you should have the know how to develop and operate them or at least be partnered with an entity that does. I decided that I was going to use a Trojan Horse strategy. I had read ancient Greek literature when I’d attended military academy in Texas and it served as inspiration. I would acquire an oil & gas operating company in Europe (the Trojan Horse), where the political barriers and costs to entry in comparison to Africa would be significantly lower. I would then use this newly acquired company, which would now be of Afro-European in heritage, to become a technical partner to many local and international investors in the upstream oil & gas business in Africa. This company would be the first of its kind and likely the most sought-after oil & gas company on the African continent because of its unique DNA and ownership. After thinking of this idea, I took myself out to a bar a few blocks from my house and ordered myself a nice strong drink. I felt like a genius.”
The lengthy post shed much light on the intriguing world of oil and gas deal making and ambitions of the rich and powerful. His personal quest to make a name for himself outside his father’s shadow set him on a business trips crisscrossing between London, Switzerland and the U.S.
Eventually opportunity came when Paddy got wind of information that Chevron Netherlands was offloading its assets. He assembled a world class management team of oil & gas veterans and put out a bid for the Chevron asset.
When he presented himself at Dutch government office to show his interest in the bid, he wrote: "I finally met Jan-Dirk at his offices with his head of operations, Thijs. I could see in both their faces, looks of confusion and reverence at the same time. How could a 29-year-old Nigerian have found himself in a position to buy Chevron’s business in the Netherlands? I told Jan-Dirk and Thijs of my intentions and that I took this bid seriously and wanted to make sure that I did everything right in the eyes of not only Chevron but the Dutch government. They both assured me that I was on the right track and that if there was any issue, they would let me know. I spent a few more days in Amsterdam, met up with a few friends, and enjoyed the Dutch nightlife and hospitality. I flew back to London.”
Paddy Adenuga: Billionaire son almost acquired Chevron for million at the age of 29
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