By Folasade Akpan
Abuja, 28 Jan. 2021 Afreximbank has disbursed 250 million dollars as part of its support for Trans Niger Oil and Gas Ltd (TNOG) to acquire 45 per cent stake in Oil Mining Lease (OML) 17 onshore oilfield.
The NNPC holds 55 per cent equity in the Lease.
The disbursement is about a quarter of the financing required to enable TNOG to buy stakes in the Lease from Shell Petroleum Development Company, Total E&P Nigeria Ltd. and ENI (AGIP).
The total support package from Afreximbank – Africa Export Import Bank – is 1.1 billion dollars, it said in a statement issued in Cairo on Thursday.
It noted that with the 250 million dollar Reserve Based Lending (RBL) facility, Afreximbank was the largest lender in the acquisition process.
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Trans Niger Oil and Gas Limited (TNOG) obtained a $250 million facility from Afrieximbank of the $1.1 billion it used in the acquisition of a 45% stake in the OML 17 onshore oil field.
This makes Afreximbank largest creditor, subscribing about a quarter of the financing, in three deal that enabled TNOG to purchase shares in OML 17 from Shell Petroleum Development Company, Total E&P Nigeria Limited and ENI.
Other participating donors include Africa Finance Corporation, Union Bank, Shell, Hybrid Capital and Schlumberger, with TNOG advised by United Capital Plc
The five-year US$1.1 billion facility, which was signed in December 2020, despite the economic headwinds caused by the COVID-19 pandemic, was led, as Mandated Lead Arrangers, by Afreximbank, Standard Chartered Bank and ABSA. Following this acquisition, TNOG will now operate the OML 17 onshore oilfield on behalf of the Nigerian National Petroleum Corporation, which owns the remaining 55% wor
The African Export-Import Bank (Afreximbank) has announced the disbursement of $250 million as part of its support for Trans Niger Oil and Gas Ltd (TNOG) to acquire 45 per cent stake in Oil Mining Lease (OML) 17 onshore oilfield.
The fund is part of the $1.1 billion which is required by the oil firm for the acquisition of the 45% stake in the oilfield in which the Nigerian National Petroleum Corporation (NNPC) holds 55% equity in the Lease.
According to a press statement from Afreximbank, the $250 million Reserve Based Lending facility, is the largest amount to be disbursed for this purpose, underwriting about a quarter of the financing that enabled TNOG to acquire stakes in OML 17 from Shell Petroleum Development Company, Total E & P Nigeria Limited and ENI.