Japaul dumps crude oil exploration, switches to mining

Japaul Oil and Maritime Services says it has shifted its focus away from crude exploration and production to mining.

At its annual general meeting (AGM) on July 29, shareholders had approved for the company to reconstruct its share capital and raise up to $70 million in new capital as part of significant redirection of the company towards growth and profitability.

At the AGM, the shareholders also approved the change of the company’s name to Japaul Gold and Ventures to reflect its new business focus from oil and gas servicing sector into natural resource management, specifically the exploration, mining, processing and export of minerals.

In an interview with Bloomberg, Jegede Paul, Japaul chairman, said the company has been affected by lowered oil prices in recent times which has forced companies in the industry to cut back on investments.

“The oil companies that we are serving have little jobs to do and the little jobs that are there, we are all battling to do at prices that are below our costs. By the next two years, we will completely be a mineral company,” Jegede was quoted to have said.

The chairman said Matrix Geotechnologies has been brought on board as the consultant and licences to explore gold, lead, nickel and copper which it has identified in commercial quantities in some parts of the country.

He said Japaul also intends to acquire smaller companies that already have licenses for those minerals.

In a bid to diversify the economy and its revenue streams, the federal government recently approved the local production of bitumen as part of its Made-in-Nigeria policy.