Afreximbank facilitates $650m for Oando’s acquisition of NOAC
The African Export-Import Bank has revealed that it facilitated $650m for Oando’s acquisition of the 100 per cent stake in the Nigerian Agip Oil Company Ltd.
In a statement on Friday, the continental bank said it successfully arranged a senior $500m and a junior $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 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.
“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.”
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
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.
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 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 $350m of the facility.
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.”
