Oando Secures $650m Afreximbank Financing for Agip Oil Acquisition

In a statement issued on Friday, Afreximbank said that the joint venture, with significant oil and gas assets, including oil mining licenses 60, 61, 62 and 63, has produced 4.4 billion barrels of oil and 12 trillion cubic feet of natural gas to date, with 1.2 billion barrels of oil and 10.7 trillion cubic feet of natural gas remaining.

Afreximbank was central to this deal, acting as the lead arranger, bookrunner, and underwriter. The bank itself invested $350 million, while Indorama Eleme Petrochemicals Limited and Mercuria Energy Group each contributed $150 million.

This acquisition is set to triple Oando’s production capacity, boosting it from 20,000 to 60,000 barrels of oil equivalent per day. This increase is expected to enhance Nigeria’s position in the global energy market and drive local economic growth by creating jobs, improving infrastructure, and advancing technology in the sector.

Haytham Elmaayergi, Executive Vice President at Afreximbank, praised the deal for its role in promoting local involvement in Africa’s oil and gas industry. He highlighted that supporting companies like Oando helps foster economic growth, boost regional trade, and advance sustainable development.

Oando’s Group Chief Executive, Wale Tinubu, was thrilled about the deal, calling it the culmination of a decade of hard work. He sees it as a significant achievement for Oando and other local energy players, marking a key moment in Nigeria’s oil sector evolution.