Trans Niger Oil Gets $250m From Afreximbank For Acquisition Of OML 17

The African Export-Import Bank On Thursday said it has disbursed the sum of $250m out of the $1.1bn for the support of acquisition by Trans Niger Oil and Gas Limited of a 45 per cent stake in OML 17 onshore oilfield.

With this $250m Reserve Based Lending facility, Afreximbank becomes the largest lender, underwriting about a quarter of the financing that enabled TNOG to buy stakes in OML 17 from Shell Petroleum Development Company, Total E&P Nigeria Limited and ENI.

Other participating lenders include Africa Finance Corporation, Union Bank, Shell, Hybrid Capital and Schlumberger, with TNOG advised by United Capital Plc.

The five-year $1.1bn 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 the acquisition, TNOG will now operate the OML 17 onshore oilfield on behalf of the Nigerian National Petroleum Corporation, which owns the remaining 55 per cent working interest.

The President of Afreximbank, Professor Benedict Oramah, who confirmed the development on Thursday said that the 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.

He said, “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.”

“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.”

Also, the Chairman of Heirs Holdings, Tony Elumelu, described the transaction as a testament to the opportunity in Nigeria.

He said, “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.

“Afreximbank has remained a key financier of the African Oil and Gas industry through Reserve Based Lending and Pre-Export Finance structures in Nigeria, Egypt, Equatorial Guinea, Ghana, Senegal, Republic of Congo, Angola, South Sudan, etc.”

Afreximbank is a Pan-African multilateral financial institution with the mandate of financing and promoting intra-and extra-African trade.

The bank was established in October 1993 and owned by African governments, the African Development Bank and other African multilateral financial institutions as well as African and non-African public and private investors.

At the end of September 2020, the Bank’s total assets and guarantees stood at $20.28bn and its shareholders funds amounted to $3.13bn.