Arco Petrochemical Engineering Company Limited says it is evolving new strategy help it take advantage of Federal Government's local content policy in the nation's oil, gas and energy sectors of the economy.

Speaking at the unveiling of its new corporate vision in Lagos on Tuesday, the Managing Director/Chief Executive Officer of the company, Mr. Alfred Okoigun, said the firm's decision to shore up its capital base was borne out of the desire to harness the enormous opportunities presented by the local content policy.

The company is seeking to shore up its capital base by N3 billion, through the conduct of a private placement of 1.25 billion ordinary shares of 50 kobo each at N2.50 per share.

The placement exercise which commenced on October 6, is to close on November 12, 2008.

According to Okoigun, "With the advent of the local content policy of the Federal Government, new opportunities are emerging for indigenous companies operating in the oil & gas sector.

It has opened a new opportunity for focussed entrepreneurs in the oil and gas sector. Capital base is increasingly becoming a critical factor in fully leveraging on the new policy direction of the government.

"In order to fully take advantage of the new opportunities, minimise interest expenses on borrowed fund and increase Arco's ability to fund big ticket contracts, it was agreed that the board should convey an extra-ordinary general meeting to approve an increase in the paid-up capital of the company."

He said it plans to list by introduction, its entire share capital on the Nigerian Stock Exchange (NSE), by the first quarter of 2009, adding that it has already laid the necessary strategies to ensure the attainment of the goal at the stated time.

He added that it intends to use proceeds from the capital raising exercise to strengthen its operations, fund its subsidiaries, diversify into new areas of operations and take advantage of new opportunities in its sector.