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The African Export-Import Bank has revealed that it facilitated USD 650m for Oando’s acquisition of the 100 per cent stake in the Nigerian Agip Oil Company Ltd. The continental bank said it successfully arranged a senior USD 500m and a junior USD 150m reserve-based lending facility for Oando Petroleum and Natural Gas Company Limited.
The African Export-Import Bank has revealed that it facilitated USD 650m for Oando’s acquisition of the 100 per cent stake in the Nigerian Agip Oil Company Ltd. The continental bank said it successfully arranged a senior USD 500m and a junior USD 150m 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 in the NEPL/NAOC/Oando Joint Venture in Nigeria.
Oando announced the completion of the acquisition on Thursday. Speaking on the role of the bank in the deal, the Executive Vice President of Global Trade Bank, Afreximbank, Haytham Elmaayergi, said 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 further.
The transaction was 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.
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.
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Afreximbank which served as mandated lead arranger for the transaction, also served as bookrunner, coordinator, underwriter, escrow agent, facility agent, and security trustee, and also participated in and underwrote USD 350m of the facility. Also participating in the transaction were Indorama Eleme Petrochemicals Limited, with USD 150m, and Mercuria Energy Group, with USD 150m.
