Afreximbank disburses $250 million to TNOG to amass 45% stake in oil lease

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The African Export-Import Bank (Afreximbank) has introduced the disbursement of $250 million as a part of its help for Trans Niger Oil and Gas Ltd (TNOG) to amass 45 per cent stake in Oil Mining Lease (OML) 17 onshore oilfield.

The fund is a part of the $1.1 billion which is required by the oil agency for the acquisition of the 45% stake within the oilfield by which the Nigerian National Petroleum Corporation (NNPC) holds 55% fairness within the Lease.

According to a press statement from Afreximbank, the $250 million Reserve Based Lending facility, is the most important quantity to be disbursed for this function, underwriting a couple of quarter of the financing that enabled TNOG to amass stakes in OML 17 from Shell Petroleum Development Company, Total E & P Nigeria Limited and ENI.

The assertion famous that different collaborating lenders within the consortium embrace African Finance Corporation, Union Bank, Shell, Hybrid Capital and Schlumberger with TNOG suggested by United Capital Plc.

Other collaborating lenders are Africa Finance Corporation, Union Bank, Shell, Hybrid Capital and Schlumberger, with United Capital Plc. advising TNOG.

TNOG is a associated firm of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc (Transcorp), a number one African conglomerate with pursuits in banking, insurance coverage, actual property, hospitality and energy

Afreximbank in its assertion stated, “The five-year US$1.1-billion-dollar 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% working interest,’’ the statement added.

What the President of Afreximbank is saying

Prof. Benedict Oramah, in his statement, said, “This 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.

‘’ TNOG as the Operator of OML 17 will invest in an accelerated production ramp up thereby boosting foreign exchange earnings and employing more Africans. This resonates with our mandate. We congratulate Heirs Holdings for keeping the Africa flag flying.

What the Chairman of Heirs Holdings is saying

The Chairman of Heirs Holdings and Transcorp Group, Tony Elumelu was quoted as saying, ‘’The transaction is a testomony to the chance in Nigeria. Our acquisition of OML 17 and essential associated belongings, considerably advances Heirs Holdings’ strategic imaginative and prescient of making Africa’s main built-in power firm.

‘’We are constructing a enterprise that can make sure that African pure assets drive African energy networks and guarantee worth creation happens in Africa. I want to take the chance to thank Afreximbank, and President Oramah for his or her sturdy help and shared imaginative and prescient of the transaction.

What it is best to know

  • Nairametrics had about 2 weeks in the past reported the acquisition of 45% stake in OML 17 from Shell, Total and ENI by Heirs Holding by TNOG Oil and Gas Limited as a part of its bid to increase its oil and gasoline portfolio.
  • TNOG which is a sister firm of Heirs Holdings Ltd. and Transnational Corporation of Nigeria Plc may have the only operatorship of the asset in a transaction that’s reported to be one of many largest oil and gasoline financings in Africa in over a decade.

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