A Review of the Nigerian Energy Industry

Oando secures $193m funding for ConocoPhillips buy

Wale Tinubu27 December 2013 – Nigeria-focused Oando Energy Resources has secured funding for its takeover of ConocoPhillips’ assets in the African nation.

Oando said on Thursday that it has entered into a second facility agreement with parent Oando that will allow it to borrow $200 million at an annual interest rate of 5%. Repayments can start on 28 February.

“The intended use of proceeds of the loan will be payment of the purchase price for the proposed acquisition by Oando Energy Resources of the Nigerian upstream oil and gas business of ConocoPhillips,” Oando said in a statement.

Oando Energy Resources currently owes an aggregate of $601 million plus interest to its parent.

The Toronto-listed company agreed earlier this year to buy ConocoPhillips’ assets in Nigeria for $1.79 billion.

It said last week that it was looking to raise $193 million through a share sale scheme in order to push through the acquisition.
*Luke Johnson, Upstreamonline

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