African Export-Import Bank (Afreximbank) has supported Trans Niger Oil and Gas Limited with $250 million credit to acquire 45 per cent stake in OML 17 onshore oilfield.
The $250 million credit makes Afreximbank the largest lender, underwriting about a quarter of the $1.1 billion that enabled TNOG to buy stakes in OML 17 from Shell Petroleum Development Company, Total E&P Nigeria Limited and ENI.
In the deal that was advised by United Capital Plc., other participating lenders are Africa Finance Corporation, Union Bank, Shell, Hybrid Capital and Schlumberger.
The five-year $1.1 billion facilities were signed in December 2020 at the peak of the economic headwinds caused by the COVID-19 pandemic, on which Afreximbank, Standard Chartered Bank and ABSA were Mandated, Lead Arrangers.
With the acquisition, TNOG will now operate the OML 17 onshore oilfield on behalf of the Nigerian National Petroleum Corporation, which owns the remaining 55 per cent working interest.
The transaction further underscores Afreximbank’s commitment to ensuring that indigenous African companies are able to play a more dominant role in the operations of specialized oil and gas assets in an industry hitherto dominated by the International Oil Companies.
President of Afreximbank, Benedict Oramah, said TNOG as the Operator of OML 17 will invest in an accelerated production ramp-up thereby boosting foreign exchange earnings and employing more Africans in a manner that resonates the bank’s mandate.
“We congratulate Heirs Holdings for keeping the Africa flag flying”, Oramah said.
Also, Chairman of Heirs Holdings, Tony Elumelu, said the transaction is a testament to the opportunity in Nigeria, stating that the acquisition of OML 17 and important related assets, significantly advances Heirs Holdings’ strategic vision of creating Africa’s leading integrated energy company.
“We are building a business that will ensure that African natural resources drive African power networks and ensure value creation occurs in Africa. I would like to take the opportunity to thank Afreximbank, and President Oramah for their strong support and shared vision of the transaction.”
Afreximbank has remained a key financier of the African Oil and Gas industry through Reserve Based Lending and Pre-Export Finance structures in Nigeria, Egypt, Equatorial Guinea, Ghana, Senegal, Republic of Congo, Angola, South Sudan, etc.
TNOG is a related company of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc (Transcorp), a leading African conglomerate with interests in banking, insurance, real estate, hospitality and power.
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