The African Export-Import Bank (Afreximbank) has announced the disbursement of $250 million as part of its support for Trans Niger Oil and Gas Ltd (TNOG) to acquire 45 per cent stake in Oil Mining Lease (OML) 17 onshore oilfield.
The fund is part of the $1.1 billion which is required by the oil firm for the acquisition of the 45% stake in the oilfield in which the Nigerian National Petroleum Corporation (NNPC) holds 55% equity in the Lease.
According to a press statement from Afreximbank, the $250 million Reserve Based Lending facility, is the largest amount to be disbursed for this purpose, underwriting about a quarter of the financing that enabled TNOG to acquire stakes in OML 17 from Shell Petroleum Development Company, Total E & P Nigeria Limited and ENI.
The statement noted that other participating lenders in the consortium include African Finance Corporation, Union Bank, Shell, Hybrid Capital and Schlumberger with TNOG advised by United Capital Plc.
Other participating lenders are Africa Finance Corporation, Union Bank, Shell, Hybrid Capital and Schlumberger, with United Capital Plc. advising TNOG.
TNOG is a related company of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc (Transcorp), a leading African conglomerate with interests in banking, insurance, real estate, hospitality and power
Afreximbank in its statement said, “The five-year US$1.1-billion-dollar facility, which was signed in December 2020, despite the economic headwinds caused by the COVID-19 pandemic, was led, as Mandated Lead Arrangers, by Afreximbank, Standard Chartered Bank and ABSA.
“Following this acquisition, TNOG will now operate the OML 17 onshore oilfield on behalf of the Nigerian National Petroleum Corporation, which owns the remaining 55% working interest,’’ the statement added.
Prof. Benedict Oramah, in his statement, said, “This transaction further underscores Afreximbank’s commitment to ensuring that indigenous African companies are able to play a more dominant role in the operations of specialized oil and gas assets in an industry hitherto dominated by the International Oil Companies.
‘’ TNOG as the Operator of OML 17 will invest in an accelerated production ramp up thereby boosting foreign exchange earnings and employing more Africans. This resonates with our mandate. We congratulate Heirs Holdings for keeping the Africa flag flying.”
The Chairman of Heirs Holdings and Transcorp Group, Tony Elumelu was quoted as saying, ‘’The transaction is a testament to the opportunity in Nigeria. Our acquisition of OML 17 and important related assets, significantly advances Heirs Holdings’ strategic vision of creating Africa’s leading integrated energy company.
‘’We are building a business that will ensure that African natural resources drive African power networks and ensure value creation occurs in Africa. I would like to take the opportunity to thank Afreximbank, and President Oramah for their strong support and shared vision of the transaction.”
- It was2 weeks ago reported the acquisition of 45% stake in OML 17 from Shell, Total and ENI by Heirs Holding through TNOG Oil and Gas Limited as part of its bid to expand its oil and gas portfolio.
- TNOG which is a sister company of Heirs Holdings Ltd. and Transnational Corporation of Nigeria Plc will have the sole operatorship of the asset in a transaction that is reported to be one of the largest oil and gas financings in Africa in over a decade.