Advising on an exciting energy partnership in Pakistan

Eversheds Sutherland advises Euro Oil on sale of stake to BB Energy

Eversheds Sutherland’s Energy team has advised Pakistan-based Euro Oil Private Limited (Euro Oil) on the sale of an equity interest in the company to the BB Energy Group, and the subsequent joint-venture and supply arrangements between the two groups.

Eversheds Sutherland’s team advised Euro Oil throughout the transaction, including on the sale of the equity interest, on the joint-venture and governance arrangements, and the supply arrangements for fuel.

The investment means that Euro Oil, a next-generation oil marketing company based in Pakistan, is now well-placed to pursue its ambitious expansion plans of opening 375 retail petrol stations and building over 50,000 tons of storage capacity across the country over the coming years. The transaction brings BB Energy’s global energy trading expertise to help Euro Oil implement its dynamic business model.

BB Energy, founded in 1937, is a leading independent energy trading company with trading hubs in the UAE, the UK, the US and Singapore. Its investment follows the recent entry of other notable oil trading companies in Pakistan.

Jason Lovell, Partner, Energy, led on the deal with assistance from Jubilee Easo, Partner, Corporate, and Will Glover, Senior Associate, Corporate.

Qbera Capital LLP was the financial and structuring lead on behalf of Euro Oil.

Commenting on the deal, Jason said:

“We were delighted to have been able to assist the Euro Oil team in this exciting partnership with BB Energy. Our oil and gas team brought its breadth of expertise to the deal – advising on both the joint venture and supply arrangements. The fact that this transaction closed under challenging conditions and while remote working demonstrates the resilience of the market and the professionalism and ambitions of all involved.” 

Sohail Ahmed, Chief Operating Officer of Euro Oil said:

“We believe that this partnership will be instrumental in our growth and will help us develop state of the art energy infrastructure in Pakistan. We are excited that a global trading firm like BB Energy has invested in Pakistan which is a testament that Pakistan remains an attractive market for foreign direct investment”.

Ali Shafqat, CEO of Qbera Capital said:

“Having supported Euro Oil and their Senior Management right from the very beginning, it is truly rewarding to lead one of the most high-profile transactions in Pakistan this year. We are very excited for Euro Oil and BB Energy partnership and strongly believe together they will achieve great success.”