Oando Plc, Nigeria’s leading integrated energy solutions provider, has signed a record $800 million transaction with the African Export-Import Bank (Afreximbank) at the Intra-African Trade Fair (IATF) in Cairo.
This strategic action is expected to be critical in the acquisition of a 20% participating stake in the Nigerian Agip Oil Company, which includes Oil Mining Leases 60, 61, 62, and 63, as well as the entire issued share capital of NAOC, from Eni S.A.
On Wednesday, IATF organizers joyfully announced the contract, hailing it as a game changer for Oando and underscoring Afreximbank’s commitment to strengthening African institutions and improving local capabilities.
The IATF-outlined finance package includes a $500 million senior secured reserve based lending facility and a $300 million receivables backed term loan facility.
In a statement, Afreximbank emphasized the significance of the transaction in shifting capacity from foreign institutions to African hands. This transaction is expected to catapult Oando to new heights in the oil business by dramatically increasing its production capacity.
Oando is a Nigerian multinational energy firm that operates in the upstream, midstream, and downstream sectors. It is listed on both the Nigerian Exchange and the Johannesburg Stock Exchange. Wale Tinubu, a significant person in the oil sector, has a 66.67% ownership in Ocean and Oil Development Partners (OODP), which indirectly owns a substantial position in Oando.
The latest financial maneuver is consistent with Tinubu’s aggressive expansion plan at Oando. Oando made headlines in September when it announced a deal with global oil behemoth Eni to acquire 100 percent of Nigerian Agip Oil Company.
This game-changing transaction has the potential to increase Oando’s holding in OMLs 60, 61, 62, and 63 from 20% to 40%, subject to Ministerial Consent and regulatory approvals.
In a simultaneous drive to improve energy accessibility throughout African markets, Oando recently signed a memorandum of understanding (MoU) with FuelCell Energy, based in the United States.
This partnership with a prominent clean energy technology inventor, targeted at developing a 5-to-15-megawatt power plant, demonstrates Oando’s dedication to sustainable and innovative energy solutions.
