Oando had previously paid down its original $525 million facility to $100 million in 2024, creating ample headroom for refinancing. The new, larger facility—arranged by Afreximbank with support from Mercuria Asia Resources PTE Limited (Mercuria)—underscores the bank’s commitment to supporting African energy companies in strategic capital management.
The expanded lending facility is expected to play a critical role in helping Oando meet its long-term production targets of 100,000 barrels of oil per day and 1.5 billion cubic feet of gas per day by the end of 2029. Achieving these targets would not only bolster Oando’s position in Nigeria’s oil and gas sector but also contribute meaningfully to the country’s overall output, strengthening its standing in the global energy market.
Afreximbank emphasized that the facility’s impact goes beyond corporate balance sheets. The transaction is expected to spur local economic growth by creating jobs, enhancing infrastructure, and fostering technological advancements across Nigeria’s oil and gas sector.
Commenting on the deal, Wale Tinubu, Group Chief Executive of Oando PLC and Executive Chairman of Oando Energy Resources, described it as a “strategic milestone” that reinforces Oando’s commitment to its joint venture with Nigerian Exploration and Production Limited (NEPL).
“We are pleased to have completed the upsizing of our RBL facility, a strategic milestone that reinforces our commitment as Operator of the Oando-NEPL JV to maximizing the value of our expanded asset portfolio,” Tinubu said.
He further highlighted the Joint Venture’s extensive reserves, which he estimated could generate over $11 billion in net cash flows for Oando over the life of the assets.
“This working capital facility is a critical enabler towards efficiently extracting and monetizing these resources,” he added.
Haytham Elmaayergi, Executive Vice President of Global Trade Bank at Afreximbank, underscored the transaction’s strategic significance for the continent.
“Afreximbank remains a longstanding financial partner to Oando PLC and its affiliates and has consistently supported the company’s growth and expansion initiatives,” he said.
Elmaayergi also framed the deal as part of Afreximbank’s broader strategy to promote local content and capacity within Africa’s oil and gas sector, aiming to ensure that more of the industry’s value is created and retained within the continent.
The upsized facility marks another chapter in Oando’s ambitious plans to expand production, optimize its asset base, and reinforce its role as one of Nigeria’s leading indigenous oil and gas companies, while also advancing broader goals of economic development and local content enhancement in the sector.