African Export-Import Bank Provides $650m Funding for Oando’s Acquisition of Nigerian Agip Oil Company Limited
In a major milestone for the African oil and gas sector, the African Export-Import Bank has announced that it has provided $650 million in funding for Oando’s acquisition of the 100 percent stake in the Nigerian Agip Oil Company Limited.
According to a statement released by the bank on Friday, the funding was arranged through a senior $500 million and a junior $150 million reserve-based lending facility for Oando Petroleum and Natural Gas Company Limited. This facility enabled Oando to acquire the 20 percent participating interest held by Nigerian Agip Oil Company Limited in the NEPL/NAOC/Oando Joint Venture in Nigeria.
The acquisition, which was completed on Thursday, marks a significant milestone for Oando, as the company becomes the sole owner of the Nigerian Agip Oil Company Limited. In a statement, Oando described the acquisition as a “historic milestone” and expressed its commitment to working with Eni to drive growth and development in the Nigerian oil and gas sector.
The Executive Vice President of Global Trade Bank, Afreximbank, Haytham Elmaayergi, commented on the role of the bank in the deal, saying 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 deal is expected to have a significant impact on the Nigerian oil and gas sector, as Oando becomes one of the largest players in the industry. The company’s acquisition of Nigerian Agip Oil Company Limited is seen as a major boost to the country’s economy, and is expected to create new opportunities for job creation and economic growth.
