- Afreximbank has announced that it successfully arranged a senior $500-million and a junior $150-million reserve-based lending facility.
- Elmaayergi described the transaction as a significant milestone in Nigeria’s upstream oil and gas sector
African Export-Import Bank (Afreximbank) has announced that it successfully arranged a senior $500-million and a junior $150-million reserve-based lending facility for Oando Petroleum and Natural Gas Company Limited.
The facility was used to finance Oando’s acquisition of the 20 per cent participating interest held by Nigerian Agip Oil Company Limited (NAOC) in Nigeria’s NEPL/NAOC/Oando Joint Venture.
A statement from the multilateral agency explained that the joint venture, with significant oil and gas assets, including oil mining licenses 60, 61, 62 and 63, has produced 4.4 billion barrels of oil and 12 trillion cubic feet of natural gas to date, with 1.2 billion barrels of oil and 10.7 trillion cubic feet of natural gas remaining.
Afreximbank, retained as the mandated lead arranger for the transaction, also served as book runner, coordinator, underwriter, escrow agent, facility agent, and security trustee and participated in and underwrote US$350 million of the facility.
Indorama Eleme Petrochemicals Limited, with US$150 million, and Mercuria Energy Group, with US$150 million, are also participating in the transaction.
Oando expects the acquisition to significantly enhance its production capacity from 20,000 barrels of oil equivalent per day (kboe/day) to 60,000 kboe/day, effectively boosting Nigeria’s oil output and reinforcing the country’s position in the global energy market. It also expects the transaction to drive local economic growth by creating jobs, improving infrastructure and fostering technological advancements in the oil and gas sector.
Mr Haytham Elmaayergi, Executive Vice President of Global Trade Bank, Afreximbank, commented on the transaction, saying the facility marked a critical step in advancing the Bank’s strategy for promoting local content in Africa’s oil and gas sector.
“By supporting the acquisition of key energy assets by an indigenous company like Oando, the Bank is fostering economic empowerment, enhancing regional trade, and contributing to the sustainable development of Africa’s natural resources,” he said.
He described the transaction as a significant milestone in Nigeria’s upstream oil and gas sector, saying that it underscored the increasing role of local companies in the ownership and operation of critical energy assets, in line with Nigeria’s local content policy, energy security and economic sovereignty strategy.