Ronke Sanya looks at the
life of Kola Aluko, a Nigerian oil, gas and aviation tycoon who is among the 50 richest Africans according to Forbes. Continue below…
Background
Kolawole Aluko was born in Lagos on 20 October, 1969. His
mother is a pharmacist while his father, Chief Akanni Aluko, is a high chief in
Ilesa, Osun State. He attended Igbobi College in Lagos. Speaking about his
growing up years, Aluko was once quoted, “I was from an early age very
ambitious and I always knew I wanted to work for myself.”
mother is a pharmacist while his father, Chief Akanni Aluko, is a high chief in
Ilesa, Osun State. He attended Igbobi College in Lagos. Speaking about his
growing up years, Aluko was once quoted, “I was from an early age very
ambitious and I always knew I wanted to work for myself.”
Business career
Recently, according to Forbes, Seven Energy, a leading
energy firm which was co-founded by Aluko, closed a financing round that now
values the company at nearly $1 billion. Temasek, the investment holding
company owned by the government of Singapore, made a $150 million investment in
Seven Energy, a privately-held Nigerian oil and gas exploration company that
Aluko co-founded in 2004.
energy firm which was co-founded by Aluko, closed a financing round that now
values the company at nearly $1 billion. Temasek, the investment holding
company owned by the government of Singapore, made a $150 million investment in
Seven Energy, a privately-held Nigerian oil and gas exploration company that
Aluko co-founded in 2004.
In a press release issued by Seven Energy, the company said
it plans to use the funds to develop its growing portfolio of assets in
Nigeria.
it plans to use the funds to develop its growing portfolio of assets in
Nigeria.
Aluko founded oil exploration company, Exoro Energy, in 2004
after a successful career in oil trading. That same year, Exoro partnered with
Energy Ventures International, a Nigerian subsidiary of Weatherford, a
Swiss-based oil and gas servicing firm, to market the latter’s exploration and
production technology in Nigeria. Energy Ventures subsequently changed its name
to Seven Energy, and in 2007, Aluko led a management buy-out of Seven Energy.
The company began acquiring Nigerian oil producing assets in 2009. Aluko left
the company’s management and board in 2011.
after a successful career in oil trading. That same year, Exoro partnered with
Energy Ventures International, a Nigerian subsidiary of Weatherford, a
Swiss-based oil and gas servicing firm, to market the latter’s exploration and
production technology in Nigeria. Energy Ventures subsequently changed its name
to Seven Energy, and in 2007, Aluko led a management buy-out of Seven Energy.
The company began acquiring Nigerian oil producing assets in 2009. Aluko left
the company’s management and board in 2011.
According to Forbes, his stake in Seven Energy is not his
largest asset. This is his 50% stake in Atlantic Energy, a private upstream Oil
and Gas Company that has a very lucrative, Strategic Alliance Agreement (SAA)
with the government-owned Nigerian Petroleum Development Company (NPDC) in
relation to four oil-producing oil blocks – OML 26, OML 30, OML 34 and OML 42.
NPDC, which is the operating arm of the Nigerian National Petroleum Corporation
(NNPC), owns 55 per cent in each of these oil blocks, which collectively
produce an average of over 108,000 barrels of oil equivalent per day. Under the
agreement Atlantic Energy currently has with NPDC, Atlantic Energy funds NPDC’s
share of the operating costs of the four oil blocks by paying the latter’s
entire cash obligations. In return for funding NPDC’s operating and capital
activity costs, Atlantic Energy gets back costs, meaning that NPDC pays back to
Atlantic Energy the initial money used to finance the operating costs, and also
earns 35 per cent of profits on the oil blocks.
largest asset. This is his 50% stake in Atlantic Energy, a private upstream Oil
and Gas Company that has a very lucrative, Strategic Alliance Agreement (SAA)
with the government-owned Nigerian Petroleum Development Company (NPDC) in
relation to four oil-producing oil blocks – OML 26, OML 30, OML 34 and OML 42.
NPDC, which is the operating arm of the Nigerian National Petroleum Corporation
(NNPC), owns 55 per cent in each of these oil blocks, which collectively
produce an average of over 108,000 barrels of oil equivalent per day. Under the
agreement Atlantic Energy currently has with NPDC, Atlantic Energy funds NPDC’s
share of the operating costs of the four oil blocks by paying the latter’s
entire cash obligations. In return for funding NPDC’s operating and capital
activity costs, Atlantic Energy gets back costs, meaning that NPDC pays back to
Atlantic Energy the initial money used to finance the operating costs, and also
earns 35 per cent of profits on the oil blocks.
Quoting its website, Forbes said Atlantic Energy has spent a
little over $500 million on the oil blocks over the last two years. The company
is believed to have earned hundreds of millions of dollars from its share of
profits during the period. The government-owned NPDC has not reported its share
of the profits on the oil blocks it co-owns.
little over $500 million on the oil blocks over the last two years. The company
is believed to have earned hundreds of millions of dollars from its share of
profits during the period. The government-owned NPDC has not reported its share
of the profits on the oil blocks it co-owns.
“As a result of his various stakes in oil companies and the
profits they have thrown off, Kola Aluko has been on the radar for the annual
Forbes Billionaires List and Forbes list of Africa’s 50 Richest.
profits they have thrown off, Kola Aluko has been on the radar for the annual
Forbes Billionaires List and Forbes list of Africa’s 50 Richest.
“Aluko, who has recently been in the media spotlight for his
closeness to stars like Naomi Campbell and Hollywood A-lister Leonardo
DiCaprio, is also a co-founder of the Made In Africa Foundation, a UK nonprofit
that supports and funds master plans and feasibility studies for large scale
infrastructure projects across Africa. Avenue in New York and other homes in
Abuja and Geneva, Switzerland,” said Forbes.
closeness to stars like Naomi Campbell and Hollywood A-lister Leonardo
DiCaprio, is also a co-founder of the Made In Africa Foundation, a UK nonprofit
that supports and funds master plans and feasibility studies for large scale
infrastructure projects across Africa. Avenue in New York and other homes in
Abuja and Geneva, Switzerland,” said Forbes.
His passion for race cars
According to a post on Nigeriavillagesquare, “Aluko is a
passionate motor sports enthusiast. He races and competes in conjunction with
Swiss-based Ferrari team, Kessel Racing.
passionate motor sports enthusiast. He races and competes in conjunction with
Swiss-based Ferrari team, Kessel Racing.
Aluko often cites the racing car driver, Ayrton Senna, as a
main inspiration, drawing parallels between racing, business and life in
general. When asked on his advice for young entrepreneurs, Aluko said: “The key
is focus, focus and again focus. Identify the things you are good at, your
strengths, and get to work on your weaknesses. The racing car driver, Ayrton
Senna, a man who inspired me greatly, is a good example. Senna was an
exceptional driver, however, initially he was terrible in wet conditions,
compared to racing in the dry, but he identified his weakness, and so everytime
it rained, he jumped into his car, and practised, practised, practised, until
he arguably became the best wet weather driver in history.”
main inspiration, drawing parallels between racing, business and life in
general. When asked on his advice for young entrepreneurs, Aluko said: “The key
is focus, focus and again focus. Identify the things you are good at, your
strengths, and get to work on your weaknesses. The racing car driver, Ayrton
Senna, a man who inspired me greatly, is a good example. Senna was an
exceptional driver, however, initially he was terrible in wet conditions,
compared to racing in the dry, but he identified his weakness, and so everytime
it rained, he jumped into his car, and practised, practised, practised, until
he arguably became the best wet weather driver in history.”
His love for mansions and yachts
“In June 2012, he was reported to have purchased two luxury
ultra-modern estates in Beverly Hills, Los Angeles, California for $40 million.
ultra-modern estates in Beverly Hills, Los Angeles, California for $40 million.
He owns a 65-metre Galactica Star Yacht, which is said to
cost above $50 million and he lives in his $40 million home in Los Angeles and
$8.6 million duplex on Fifth Avenue in New York and other homes in Abuja and
Geneva, Swit.
cost above $50 million and he lives in his $40 million home in Los Angeles and
$8.6 million duplex on Fifth Avenue in New York and other homes in Abuja and
Geneva, Swit.
Follow Us on Facebook – @LadunLiadi; Instagram – @LadunLiadi; Twitter – @LadunLiadi; Youtube – @LadunLiadiTV for updates
