The African Export-Import Bank’s (Afreximbank) has provided $650 million lending facility to Oando Plc, enabling the company’s successful $783 million acquisition of the Nigerian Agip Oil Company (NAOC). The bank disclosed this development on its official website on Friday, noting that the loan package includes both senior and junior reserve-based lending facilities.
This strategic financing was critical to Oando Plc’s acquisition of NAOC from Italian energy giant Eni, as reported earlier by Parrot Reporters. Afreximbank’s contribution to the transaction comprised a $500 million senior credit facility and a $150 million junior reserve-based lending facility, ensuring the seamless execution of the deal.
In its official statement, Afreximbank highlighted the significance of the facility: “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 funds were directed towards financing Oando’s acquisition of the 20% participating interest held by Nigerian Agip Oil Company Limited (NAOC) in the NEPL/NAOC/Oando Joint Venture in Nigeria.”
The NEPL/NAOC/Oando Joint Venture is a major player in Nigeria’s oil and gas industry, holding valuable assets such as oil mining licenses 60, 61, 62, and 63. To date, these assets have produced 4.4 billion barrels of oil and 12 trillion cubic feet of natural gas, with an estimated 1.2 billion barrels of oil and 10.7 trillion cubic feet of gas still in reserve.
Afreximbank’s Critical Role in the Transaction
Beyond serving as the mandated lead arranger, Afreximbank played multiple roles, including acting as the bookrunner, coordinator, underwriter, escrow agent, facility agent, and security trustee. The bank itself underwrote $350 million of the total financing, underscoring its deep involvement in the transaction.
Haytham Elmaayergi, Executive Vice President of Global Trade at Afreximbank, emphasized the importance of this deal, stating, “This transaction marks a significant step in our mission to boost local content in Africa’s oil and gas sector. By supporting the acquisition of key energy assets by an indigenous company like Oando, Afreximbank is driving economic empowerment, advancing regional trade, and contributing to the sustainable management of Africa’s natural resources.”
Wale Tinubu, Group Chief Executive of Oando Plc, praised Afreximbank’s partnership, attributing the success of this milestone to years of meticulous planning and perseverance, dating back to their 2014 acquisition of ConocoPhillips’ Nigerian portfolio. “We are immensely grateful to Afreximbank for its unwavering leadership in closing the trade finance gap in Africa, which has enabled Oando to solidify its stake in the Joint Venture through this acquisition,” Tinubu remarked.
Strategic Importance of the Acquisition
Oando’s acquisition of NAOC significantly strengthens its presence in Nigeria’s oil and gas sector. With this deal, Oando’s share in Oil Mining Leases (OMLs) 60, 61, 62, and 63 increases from 20% to 40%, enhancing its control over all NEPL/NAOC/Oando Joint Venture assets. These assets include 40 discovered oil and gas fields, with 24 of them currently in production.
Moreover, Oando now holds stakes in key infrastructure assets, such as approximately 1,490 kilometers of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Kwale Okpai power plants, which together have a capacity of 960 megawatts.
This acquisition positions Oando for substantial growth in its upstream operations and solidifies its status as a dominant force in Nigeria’s energy sector.
