Oando PLC, one of Nigeria’s leading indigenous energy solutions providers, has secured an $800 million loan for the acquisition of the Nigerian Agip Oil Company (NAOC). This significant deal was signed with the African Export and Import Bank (Afreximbank) at the Intra-African Trade Fair in Cairo, Egypt.
Oando PLC signed an $800 million loan document with Afreximbank to facilitate the acquisition of 100% of the shares of NAOC.
The loan agreement underscores Afreximbank’s commitment to empowering African institutions and enhancing local capacity.
The loan is a syndicated dual facility, comprising a $500 million Senior Secured Reserve Based Lending facility and a $300 million Receivables Backed Term Loan facility.
Oando’s acquisition of NAOC involves a 20% participating interest in the Nigerian Agip Oil Company Limited across Oil Mining Leases (OMLs) 60, 61, 62, and 63.
Upon completion of the assets acquisition transaction, subject to Ministerial Consent and other regulatory approvals, Oando’s current participating interests in OMLs 60, 61, 62, and 63 will increase from 20% to 40%.
The acquisition will further increase Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure, including discovered oil and gas fields, production stations, pipelines, gas processing plants, and power plants.
The acquisition is seen as a strategic move that will unlock opportunities for Oando to enhance efficiency, optimize resource allocation, and significantly increase production.
Oando aims to align expectations, appraise reserves, and efficiently develop them, in line with its growth strategy.
The company believes that indigenous actors, like Oando, will play a crucial role in the future of Nigeria’s upstream sector.
Oando is looking forward to closing the transaction and leveraging the enhanced platform to create value for local communities, stakeholders, and shareholders.