Afreximbank Boosts Oando’s Production Strategy with $375 Million Facility
Nigerian oil and gas company Oando Oil Limited has moved significantly closer to its ambitious production targets following the completion of a $375 million reserve-based lending facility upsizing by the African Export-Import Bank. The enhanced facility, supported by Mercuria Asia Resources PTE Limited, represents a strategic capital management milestone for the company.
The upsizing was made possible after Oando successfully reduced its original $525 million facility, secured in 2019, to just $100 million in 2024, creating substantial headroom for refinancing and enhanced financial flexibility.
This financial boost directly supports Oando’s ambitious goal to achieve production of 100,000 barrels of oil per day and 1.5 billion cubic feet of gas per day by the end of 2029. The increased production capacity is expected to significantly boost Nigeria’s overall oil output and strengthen the country’s position in the global energy market.
Group Chief Executive Wale Tinubu highlighted that the Oando-NEPL Joint Venture holds extensive reserves with potential to generate over $11 billion in net cash flows over the assets’ lifetime. The working capital facility serves as a critical enabler for efficiently extracting and monetizing these substantial resources.
Afreximbank’s Executive Vice President Haytham Elmaayergi emphasized the bank’s longstanding partnership with Oando and its commitment to promoting local content in the region’s oil and gas sector.
Source: oilreviewafrica.com
