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In a landmark move at the Intra-African Trade Fair (IATF) in Cairo, Nigeria’s prominent integrated energy solutions provider, Oando Plc, led by the distinguished oil magnate Wale Tinubu, has finalized a groundbreaking $800-million deal with the African Export-Import Bank (Afreximbank).
This strategic move is set to play a pivotal role in the acquisition of a 20-percent participating interest in the Nigerian Agip Oil Company, encompassing Oil Mining Leases 60, 61, 62, and 63, along with the entire issued share capital of NAOC, purchased from Eni S.A.
Afreximbank’s strategic $800-million financial package signals shift in African market dynamics
The organizers of IATF enthusiastically announced the deal on Wednesday, heralding it as a game-changer for Oando and emphasizing Afreximbank’s commitment to bolstering African institutions and enhancing local capacity.
The financial package, outlined by IATF, consists of a $500-million senior secured reserve based lending facility and a $300-million receivables backed term loan facility.
Afreximbank, in a statement, highlighted the significance of the deal in transferring capacity from foreign institutions to African hands. This move is anticipated to propel Oando to new heights in the oil industry by significantly augmenting its production capacity.
Oando’s strategic moves and Wale Tinubu’s influence in the Nigerian energy sector
Oando, a Nigerian multinational energy company active in upstream, midstream, and downstream sectors, is dual-listed on the Nigerian Exchange and the Johannesburg Stock Exchange. Wale Tinubu, a key figure in the energy sector, indirectly holds a substantial stake in Oando through his 66.67-percent stake in Ocean and Oil Development Partners (OODP).
The latest financial maneuver aligns with Oando’s aggressive expansion strategy under Tinubu’s leadership. In September, Oando made waves by announcing an agreement with global energy giant Eni for the acquisition of 100 percent of the shares of Nigerian Agip Oil Company.
This transformative acquisition is poised to elevate Oando’s stake in OMLs 60, 61, 62, and 63 from 20 percent to an impressive 40 percent, contingent on securing Ministerial Consent and regulatory approvals.
In a parallel move towards enhancing energy accessibility across African markets, Oando recently inked a memorandum of understanding (MoU) with U.S.-based FuelCell Energy.
This collaboration with a leading innovator in clean energy technologies, aimed at developing a 5-to-15-megawatt power plant, signifies Oando’s commitment to sustainable and innovative energy solutions.
