Afreximbank Facilitates $650m for Oando’s Acquisition of Nigerian Agip Oil Company Ltd

The African Export-Import Bank (Afreximbank) has announced that it has facilitated a $650 million financing facility for Oando’s acquisition of a 100% stake in the Nigerian Agip Oil Company Ltd. The facility was used to finance Oando’s acquisition of a 20% participating interest held by Nigerian Agip Oil Company Limited in the NEPL/NAOC/Oando Joint Venture in Nigeria.

According to a statement released by Afreximbank, the bank 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% participating interest held by Nigerian Agip Oil Company Limited in the joint venture.

Oando announced the completion of the acquisition on Thursday, stating that the deal marked a historic milestone for the company. The acquisition aligns with Oando’s commitment to driving Nigeria’s energy transition and bolstering its portfolio.

Afreximbank’s Executive Vice President of Global Trade Bank, Haytham Elmaayergi, said that 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.

The joint venture, which has 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 played a multi-faceted role in the transaction, serving as mandated lead arranger, bookrunner, coordinator, underwriter, escrow agent, facility agent, and security trustee. The bank also participated in and underwrote $350 million of the facility. Other participants in the transaction included Indorama Eleme Petrochemicals Limited and Mercuria Energy Group.

Oando’s Group Chief Executive, Wale Tinubu, thanked Afreximbank for its leadership in bridging the trade finance gap in Africa and enabling the company to consolidate its stake in the joint venture. “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,” he said. “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.”