By Ayomide Otitoju
The African Export-Import Bank (Afreximbank) has successfully completed the upsizing of its reserve-based lending (RBL) facility for Oando Oil Limited to $375 million, bolstering the company’s financial flexibility and production ambitions.
In a statement released on Tuesday, Afreximbank disclosed that Oando had reduced the balance of its original $525 million facility, secured in 2019, to $100 million by 2024, thereby creating room for refinancing. The upsized facility, led by Afreximbank and supported by global energy trader Mercuria Asia Resources PTE Limited, marks a strategic milestone in Oando’s capital management plan.
The financing will support Oando’s target to ramp up production to 100,000 barrels of oil per day and 1.5 billion cubic feet of gas per day by 2029 — a move expected to significantly boost Nigeria’s oil output and contribute to the global energy supply.
“This upsizing is a critical enabler in unlocking the full value of our asset portfolio,” said Wale Tinubu, Group Chief Executive of Oando PLC and Executive Chairman of Oando Energy Resources. “Our joint venture with NEPL holds vast reserves capable of generating over $11 billion in net cash flows. We appreciate the continued partnership of Afreximbank and Mercuria, which reinforces our shared commitment to long-term value creation.”
Haytham Elmaayergi, Executive Vice President of Afreximbank’s Global Trade Bank, described the transaction as a vital step in promoting local content and technological innovation in Africa’s oil and gas sector.
“Afreximbank remains a long-standing financial partner of Oando and is pleased to collaborate once again,” Elmaayergi said. “With Mercuria’s global expertise, Oando is well positioned to execute its production growth strategy and strengthen its role in the region’s energy landscape.”
The facility is also expected to drive job creation, enhance infrastructure, and stimulate economic growth within Nigeria’s energy sector.
