Portugal’s Mota-Engil has entered into a joint venture with Nigerian oil firm Shoreline Group in a move that could secure it $1.8bn of construction work.
The move allows Mota-Engil to move into what is Africa’s largest economy and producer of oil, bringing to an end any lingering focus on raising funds via an initial public offering.
This was attempted in 2014 but failed due to unfavourable market conditions. However, with the stabilisation of commodity prices providing confidence to investors, the Portuguese company is looking to take advantage of any growth in building demand.
In an interview in Portugal earlier this week, Manuel Antonio Mota, CEO of Mota-Engil Africa, said: “The projects in Nigeria that are currently on the table vary between €20mn and €1.5bn ($23.3mn and $1.75bn). This could make a big difference to our order book.”
Angola currently represents Mota-Engil’s largest African market, where the company currently has a backlog of work worth $3.5bn. In total, the firm works in 14 African nations.
Mota added: “We know that Angola went through a very difficult phase economically but it’s starting to recover. In terms of late payments, we think there will be a solution in the near future.”