11 October 2013 – Oando Energy Resources has gained key financing commitments to bankroll its planned acquisition of ConocoPhillips’ Nigerian oil and gas business, after delaying the date for completion of the deal.
The Toronto-listed player said it had now secured pledges for up to $815 million of bank financing to wrap up the second stage of its funding effort for the transaction, having already paid a $435 million deposit to the US supermajor.
The parties last month amended the terms of the original $1.79 billion deal to exclude a stake in Brass LNG, cutting the value of the acquisition to $1.22 billion, and extend the completion deadline to 30 November.
Oando chief executive Pade Durotoye said the bank commitments, which include separate loan tranches of $465 million and $350 million and are subject to closing conditions, represented ”an important step” towards closing the acquisition.
*Steve Marshall, Upstreamonline