Oando Secures $800 Million Afreximbank Commitment for Asset Acquisition

At the Intra-African Trade Fair in Egypt Cairo, AfreximBank and Oando PLC, Nigeria’s leading indigenous energy solutions provider, signed an $ 800 million loan document to facilitate the company’s acquisition of 100% of the shares of the Nigerian Agip Oil Company (NAOC).

The moderator of the deal signing described it as “a significant and strategic acquisition of 20% participating interest in the Nigerian Agip Oil Company Limited across OMls 60, 61, 62 and 63.”

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).

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 forty discovered oil and gas fields, of which twenty-four are currently producing, approximately forty identified prospects and leads, twelve 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.

The IATF 2023, since commencing on the 9th of November, has been replete with deal signing, reiterating AfreximBank’s support and commitment to pushing the African continent forward.

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.