The African Export-Import Bank announced its role in facilitating a $650 million financing package for Oando Petroleum and Natural Gas Company Limited’s acquisition of a full stake in Nigerian Agip Oil Company Ltd.
This was disclosed in a statement on Friday.
The continental bank said it structured a senior $500 million and a junior $150 million reserve-based lending facility to support Oando’s purchase of the 20% participating interest previously held by NOAC in the NEPL/NAOC/Oando Joint Venture.
Oando announced the completion of the acquisition on Thursday saying, “Today marks a historic milestone for Oando Plc as we proudly announce the completion of our agreement with Eni for the acquisition of 100 per cent shares of Nigerian Agip Oil Company Limited, according to The Punch.
“The signing ceremony, held in London, cements our position as Nigeria’s leading indigenous energy solutions provider. This strategic acquisition aligns our commitment to driving Nigeria’s energy transition and bolstering our portfolio.”
Commenting on the development, the Executive Vice President of Global Trade Bank, Afreximbank, Haytham Elmaayergi, stated that the $650 million facility represents a significant milestone in the bank’s strategy to promote 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, emphasizing its alignment 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.
Afreximbank, which acted as the mandated lead arranger for the transaction, also took on multiple key roles, including bookrunner, coordinator, underwriter, escrow agent, facility agent, and security trustee. Additionally, the bank participated in and underwrote $350 million of the $650 million facility, further demonstrating its pivotal involvement in the deal.
Also participating in the transaction were Indorama Eleme Petrochemicals Limited, with $150m, and Mercuria Energy Group, with $150m.
On Afreximbank contribution to the deal, Group Chief Executive, Oando, Wale Tinubu, said, “Today’s announcement is the culmination of 10 years of toil, resilience, and an unwavering belief in the realisation of our ambition since the 2014 entry into the joint venture via the acquisition of Conoco-Philips Nigerian Portfolio.
“It is a win for Oando, and every indigenous energy player, as we take our destiny in our hands, and play a pivotal role in this next phase of the nation’s upstream evolution.
“We thank Afreximbank for its unwavering leadership in bridging the trade finance gap in Africa and ensuring that Oando can consolidate its stake in the joint venture via the acquisition of NAOC 20 per cent stake.”
