Nigerian Energy Giant Oando Secures Massive $375M Financing Deal to Triple Production
Nigerian energy powerhouse Oando has successfully secured a massive $375 million refinancing package led by pan-African financial institution Afreximbank, setting the stage for dramatic production expansion that could reshape the country’s oil landscape.
The landmark deal, supported by oil and gas company Mercuria Asia Resources, will fuel Oando’s ambitious plan to achieve production levels of 100,000 barrels of oil per day and 1.5 billion cubic feet of gas per day by 2029 – representing a significant leap from current output levels.
“Our Nigerian Joint Venture holds extensive reserves with the potential to generate over $11 billion in net cashflows to Oando over the assets’ life,” announced Wale Tinubu, Group Chief Executive of Oando, describing the working capital facility as “a critical enabler” for resource extraction and monetization.
Operating one of Nigeria’s largest upstream asset portfolios, Oando commands a 20% interest in oil mining leases OMLs 60-62 and boasts a reserve base of approximately one billion barrels of oil equivalent. The company’s infrastructure network spans 40 discovered fields, 24 producing fields, over 1,250km of pipelines, multiple flow stations, three gas processing facilities, an export terminal, and two power plants with a combined 1 GW capacity.
The refinancing represents a strategic expansion from a previous reserve-based loan facility that was initiated at $525 million in 2019 and paid down to $100 million by the end of 2024.
Source: energycapitalpower.com
