Oando secures $800m loan for Agip Nigeria’s acquisition

AfreximBank and Oando PLC, yesterday at the Intra-African Trade Fair in Egypt Cairo, signed an $800 million loan document to facilitate the firm’s acquisition of 100% of the shares of the Nigerian Agip Oil Company (NAOC).

Recall that on Monday, September 4, 2023, Oando PLC announced that it had reached an agreement with Eni, an Italian multinational energy company with operations in 62 countries, including Nigeria, for the acquisition of 100% of the shares of the Nigerian Agip Oil Company (NAOC).

In the moderator’s words, the deal is “… a significant and strategic acquisition of 20% participating interest in the Nigerian Agip Oil Company Limited across OMls 60, 61, 62 and 63.”

Upon completion of the assets acquisition transaction, subject to Ministerial Consent and other required regulatory approvals, Oando’s current participating interests in OMLs 60, 61, 62, and 63 will go from 20% to 40%.

The transaction would further increase Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include 40 discovered oil and gas fields, of which 24 are currently producing, approximately forty identified prospects and leads, 12 production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale-Okpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure.

Since the commencement of the IATF, Afreximbank has signed over ten financing deals with companies across different sectors to facilitate Africa’s growth ambitions.

This collaboration signed at IATF2023 is about more than financing – it’s about fostering growth and strengthening partnerships across borders for Africa’s growth ambitions.