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Paddy Adenuga: How I NEARLY bought Chevron Netherlands (long read)

Paddy Adenuga: How I NEARLY bought Chevron Netherlands (long read)
January 30
14:53 2018
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I registered a new upstream oil & gas investment company offshore and called it, The Catalan Corporation. The name didn’t really have a meaning, it just sounded nice and had a confident, stately demeanour to it. To keep costs at a minimum, I decided to put together an advisory board that consisted of Vance Querio, the COO of Addax Petroleum at the time and an industry professional and my mentor (who will remain nameless for good reason), one of Africa’s biggest business giants. Vance was all too happy to join and signed on quickly. I called my mentor and before signing on, he wanted a face to face meeting for me to explain my plan and ambitions for Catalan. He asked me to meet him in the early spring of 2014 at a health spa in a small Swiss village outside of Zurich. I have to admit the drive from Zurich to this little village tucked within the Swiss mountains still remains one of the most beautiful sights I have ever seen. The spring sun had begun to melt the snow on the mountains and in the distance; you could see the melting snow turn into giant waterfalls pouring off the mountains. It was like an oil painting come to life.

I eventually met with my mentor and after explaining my idea to him and that him being on my advisory board would not only give my burgeoning company credibility but help us raise cash, he agreed in totality and went further to tell me that I should tell anyone and everyone that he was not only on board but was going to give our company his full support. We drank some tea together and the next morning I was off back to London. My little plan for Africa oil & gas was coming together, finally put into action by two African men in a Swiss village. You couldn’t make this stuff up.

On the plane flying back to London from Zurich, even though I had just gotten my mentor on board, I felt that there was someone missing. A few years prior I was the spearhead of my family’s acquisition drive for OML 30 (this is another whole story in itself), one of Shell Nigeria’s most lucrative oil blocks that was up for sale, I met a brilliant English banker named Edgar. Edgar had more than 30 years of oil & gas operations and finance experience. He was respected by the industry on a global basis and having him on board would be the final piece in the puzzle, the icing on the cake. I called Edgar immediately I landed and asked if we could meet for lunch, my treat as always.

I pitched Catalan to Edgar and how if we pulled this off it would be the grandest of coups. Edgar was highly intrigued but stated that he wanted hard cash upfront from the onset. Whilst the others were all too eager to come on board and make their money via sweat equity or cash incentives when we had a target company in our sights, Edgar wanted to be paid money and a substantial amount before putting pen to paper. I was confused by his behaviour. I told him who the others were that were on Catalan’s advisory board but he wasn’t having it, either he would be paid his princely sum to attach his name to Catalan or no deal. I was 29 at the time and was still head-strong and prideful. How could this guy develop such an attitude? I thought we were friends. I suppose Edgar knew his value and wasn’t going to mortgage it on a promise of monies at a later date. As much as he liked my Trojan Horse idea, he just happened to like money more. I balked at his request in annoyance. I paid for lunch, told him no way, and stormed off home. This was a big mistake on my part that would rear its ugly head later.

I appointed two of my most trusted confidants as directors in Catalan and with that the company was set to go. I designed the logo for Catalan – a coat of arms with a cross in the middle. I am after all a devout Catholic and a strong believer in God, so why not have my faith represented on my company logo? I then called my friend Nicolas Lavrov, a web and graphics designer and over the course of a week we put together a sleek and polished company profile which me, my directors and advisory board began emailing out to interested parties. A few weeks later, I got an email from Richard Kent of Jeffries. Jeffries are an investment bank that work closely with multi-national oil companies (the majors) on the acquisition or divestment of oil & gas assets on a worldwide basis. Richard had gotten a copy of my company profile and wanted to have a meeting. I wore one of my finest suits and hopped into a taxi to his offices in London City.

Richard and I talked extensively about my background and my ambitions for Catalan. I explained to him the type of company we were looking to acquire, ideally an oil & gas company in Europe, preferably operating out of the North Sea with a strong daily production and enough reserves to warrant further investment in development. I also told Richard how much we would be ready to spend for the first acquisition – between USD 50 million and USD 100 million. We would finance our acquisition via reserve based lending and would likely raise cash equity of thirty percent of our purchase price with a Bank raising debt of seventy percent to help the balance of the purchase price. I had described the “goldilocks” company Catalan needed to acquire. With that said, Richard told me to give him some time to find the best deal for Catalan.

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Social Comments

8 Comments

  1. lexy
    lexy January 30, 21:55

    The managing director of Petrogas of Oman was a close friend of his and he knew he was bidding for Chevron Netherlands at the time. If I had told him what I was up to when we saw in London, whilst I was searching for the last bidder, he would have introduced us. I was blown away. There it was that whole time. That mystery last bidder that I had searched so hard for was there for my taking and it passed right by me. This killed it.. Had a lot to learn from your business adventure..

    Reply to this comment
  2. CCIMSSS
    CCIMSSS January 31, 05:38

    Try to think outside the box… must it be Oil& Gas?

    Reply to this comment
  3. Adeleke Oriade
    Adeleke Oriade January 31, 07:41

    Almost almost. Buy it and bring refining to nigeria abeg

    Reply to this comment
  4. nonso
    nonso February 01, 04:31

    Interesting read! More grease to your elbow

    Reply to this comment
  5. Suffi
    Suffi February 01, 12:26

    Great story on Paddy business adventure. It’s really inspiring and i have learnt a lot from this young man. Please post more this type of story on your new board

    Reply to this comment
  6. Capt. Eke
    Capt. Eke February 02, 16:28

    It’s always good to be a good son & a good boy. Keep it up. Also remember the down trodden Nigeria youths who need empowerment and job. Oil & gas business is diversifying, it has the opportunity and a wider range where youths can be involved positively
    I sincerely wish you good luck in your future endeavors in Jesus mighty name-Amen.

    Reply to this comment
  7. @DiasporaBro
    @DiasporaBro February 02, 21:10

    I like this story. If he had succeeded in pulling this through, people will say it is because of his father’s money, without knowing the tenacious efforts Paddy put in! Nice one, Paddy! We live and we learn.

    Reply to this comment
  8. Lyn
    Lyn July 05, 07:28

    I will like to meet you; got host of business ideas.

    Reply to this comment

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