Afreximbank facilitates $650m for Oando’s Agip Oil acquisition

African Export-Import Bank (Afreximbank) has successfully arranged a $500 cardinal elder and $150 cardinal inferior reserve-based lending installation for Oando Petroleum and Natural Gas Company Limited.

The installation was utilized to concern Oando’s acquisition of the 20 percent participating involvement held by Nigerian Agip Oil Company Limited (NAOC) successful the NEPL/NAOC/Oando Joint Venture successful Nigeria.

The associated venture, with important lipid and state assets including lipid mining licences 60, 61, 62, and 63, has produced 4.4 cardinal barrels of lipid and 12 trillion cubic feet of earthy state to date, with 1.2 cardinal barrels of lipid and 10.7 trillion cubic feet of earthy state remaining.

Afreximbank, retained arsenic the mandated pb arranger for the transaction, besides served arsenic bookrunner, coordinator, underwriter, escrow agent, installation agent, and information trustee, portion besides participating and underwriting $350 cardinal of the facility.

Other participants successful the transaction included Indorama Eleme Petrochemicals Limited with $150 cardinal and Mercuria Energy Group with $150 million.
Oando expects the acquisition to importantly heighten its accumulation capableness from the existent 20,000 barrels of lipid equivalent per time (kboe/day) to 60,000 kboe/day, efficaciously boosting Nigeria’s lipid output and reinforcing the country’s presumption successful the planetary vigor market.

It besides expects the transaction to thrust section economical maturation by creating jobs, improving infrastructure, and fostering technological advancements successful the lipid and state sector.

Leading Oando’s information astatine the closing ceremonial held successful London, United Kingdom, connected August 22, 2024, was the Group Chief Executive, Wale Tinubu. He was accompanied by representatives of ENI S.P.A., led by the Group Chief Operating Officer, Guido Brusco, and representatives from Mercuria Energy Group. Afreximbank was represented by Peter Adeshola Olowononi, Head, Client Relations, Anglophone West Africa, and Mrs. Ketiwe Lwando, Manager, Structured Trade & Commodity Finance.

Commenting connected the transaction, Executive Vice President of Global Trade Bank astatine Afreximbank, Haytham Elmaayergi, said that the installation marked a captious measurement successful advancing the bank’s strategy for promoting section contented successful Africa’s lipid and state sector.

“By supporting the acquisition of cardinal vigor assets by an indigenous institution similar Oando, the slope is fostering economical empowerment, enhancing determination trade, and contributing to the sustainable improvement of Africa’s earthy resources,” helium said.

He described the transaction arsenic a important milestone successful Nigeria’s upstream lipid and state sector, saying it underscored the expanding relation of section companies successful the ownership and cognition of captious vigor assets, successful enactment with Nigeria’s section contented policy, vigor security, and economical sovereignty strategy.

Group Chief Executive of Oando, Wale Tinubu, noted: “Today’s announcement is the culmination of 10 years of toil, resilience, and an unwavering content successful the realisation of our ambition since the 2014 introduction into the Joint Venture via the acquisition of Conoco-Phillips Nigerian Portfolio.

“It is simply a triumph for Oando and each indigenous vigor player, arsenic we instrumentality our destiny successful our hands and play a pivotal relation successful this adjacent signifier of the nation’s upstream evolution.”

He said with the firm’s presumption of the relation of operator, its contiguous absorption is connected optimising the assets’ immense potential, advancing production, and contributing to its strategical objectives.

“This we volition bash portion prioritising liable practices and sustainable development, ensuring a balanced attack to our big communities and biology stewardship, arsenic we complement the nation’s program to boost accumulation output.

“We convey Afreximbank for its unwavering enactment successful bridging the commercialized concern spread successful Africa and ensuring that Oando tin consolidate its involvement successful the Joint Venture via the acquisition of NAOC’s 20 percent stake.” NAOC is simply a subsidiary of Italian multinational ENI S.P.A.
African Export-Import Bank (Afreximbank) is simply a Pan-African multilateral fiscal instauration mandated to concern and beforehand intra-and extra-African trade.
For 30 years, the slope has been deploying innovative structures to present financing solutions that enactment the translation of the operation of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economical enlargement successful Africa.

A stalwart protagonist of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) arsenic the outgo and colony level to underpin the implementation of the AfCFTA.
Working with the AfCFTA Secretariat and the AU, the slope is mounting up a $10 cardinal Adjustment Fund to enactment countries efficaciously participating successful the AfCFTA.

At the extremity of December 2023, Afreximbank’s full assets and guarantees stood astatine implicit $37.3 billion, and its shareholder funds amounted to $6.1 billion.