AGS NEWS – The African Export-Import Bank (Afreximbank) has announced that it facilitated $650 million for Oando’s acquisition of a 100% stake in the Nigerian Agip Oil Company Ltd.

In a statement released on Friday, the bank disclosed that it arranged a $500 million senior and a $150 million junior reserve-based lending facility for Oando Petroleum and Natural Gas Company Limited.

This funding was used to finance Oando’s acquisition of a 20% participating interest held by Nigerian Agip Oil Company Limited in the NEPL/NAOC/Oando Joint Venture in Nigeria.

Oando officially completed the acquisition on Thursday, marking a significant milestone for the company.

The signing ceremony in London highlighted Oando’s strategic move to strengthen its position as Nigeria’s leading indigenous energy provider, in line with its commitment to advancing the country’s energy transition.

Afreximbank’s Executive Vice President, Haytham Elmaayergi, emphasized that the facility supports the bank’s strategy to promote local content in Africa’s oil and gas sector.

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He noted that the transaction was a significant step in empowering local companies, enhancing regional trade, and contributing to Africa’s sustainable development.

The joint venture, which includes oil mining licenses 60, 61, 62, and 63, has historically produced 4.4 billion barrels of oil and 12 trillion cubic feet of natural gas, with substantial reserves remaining.

Afreximbank played a central role in the transaction, serving as lead arranger, underwriter, and security trustee, and also participating with $350 million of the facility.

Other participants included Indorama Eleme Petrochemicals Limited and Mercuria Energy Group, both contributing $150 million each.

Oando’s Group Chief Executive, Wale Tinubu, expressed gratitude for Afreximbank’s support, stating that the acquisition is a significant achievement for Oando and other indigenous energy companies in Nigeria.

He noted that this marks the culmination of a decade-long effort to solidify Oando’s stake in the joint venture.