Oritsegbubemi Omatseyin Lagos — Oando Plc has announced that its upstream subsidiary, Oando Oil Limited, a 20% participating interest holder in the OMLs 60-63 JV and an affiliate of Oando Energy Resources Nigeria Limited, has successfully completed the upsizing of its Afreximbank Reserve-Based Lending, RBL2, facility to $375 million.
The RBL2 facility secured in 2019 at $525 million, was paid down to $100 million by year-end 2024, creating significant headroom for refinancing and enhancing Oando’s financial flexibility.
This refinancing, led by the African Export-Import Bank, Afreximbank, with support from Mercuria Asia Resources PTE Limited, marks a key milestone in Oando’s strategic capital management, and will support the Company’s ambition to achieve 100,000 barrels of oil per day and 1.5 billion cubic feet of gas per day by the end of 2029.The newly secured funds will be channelled into key growth initiatives including intensified drilling campaigns, critical infrastructure upgrades, and advanced operational efficiency enhancements across the company’s energy portfolio.
The transaction follows Oando’s successful acquisition of Nigerian Agip Oil Company Limited, NOAC, in August 2024, as a result of which Oando now operates one of the largest upstream asset portfolios in Nigeria. This transformative acquisition significantly expanded Oando’s operational landscape with a reserve base of approximately 1 billion barrels of oil equivalent, along with an extensive infrastructure network comprising 40 discovered oil and gas fields of which 24 are currently producing; approximately 40 identified prospects and leads; over 1,250 kilometers of pipelines; multiple flow stations; 3 gas processing facilities; a major export terminal and two power plants with a combined 1 GW capacity.
Commenting on this development, Wale Tinubu, Group Chief Executive, Oando Plc and Executive Chairman, Oando Energy Resources said: “We are pleased to have completed the upsizing of our RBL2 facility, a strategic milestone that reinforces our commitment as Operator of the Oando-NEPL JV to maximize the value of our expanded asset portfolio.
“Our Joint Venture holds extensive reserves with the potential to generate over $11 billion in net cash flows to Oando over the assets’ life. This working capital facility is a critical enabler towards efficiently extracting and monetizing these resources. We appreciate the continued partnership of Afreximbank and Mercuria, whose unwavering support underscores their alignment with our long- term focus on maximizing production, optimizing asset performance, and delivering sustainable value to all stakeholders.”
Afreximbank, is a longstanding financial partner to Oando Plc and its affiliates and has consistently supported the Company’s growth and expansion initiatives, reinforcing its commitment to financing indigenous African businesses. Mercuria, one of the world’s largest independent energy and commodities groups, brings its global expertise and financial backing, further strengthening Oando’s ability to execute its production growth strategy.
