Afreximbank disbursed $ 250 million to support Tony Elumelu in the acquisition of 45% of the OML 17 oil field

The African Import-Export Bank (Afreximbank) disbursed $ 250 million of the $ 1.1 billion that supported the acquisition by Trans Niger Oil and Gas Limited (TNOG) of a 45% stake in the OML 17 onshore oil field. With this loan facility, Afreximbank is the project’s largest donor, subscribing about a quarter of the financing that enabled TNOG to purchase shares in OML 17 from Shell Petroleum Development Company, Total E&P Nigeria Limited and ENI. Other participating donors include Africa Finance Corporation, Union Bank, Shell, Hybrid Capital and Schlumberger, with TNOG advised by United Capital Plc.

The five-year US $ 1.1 billion facility, which was signed in December 2020, despite economic headwinds caused by the COVID-19 pandemic, was piloted, as mandated principal arrangers, by Afreximbank, Standard Chartered Bank and ABSA. Following this acquisition, TNOG will now operate the OML 17 onshore oil field on behalf of the Nigerian National Petroleum Corporation, which holds the remaining 55% stake. “This transaction further underscores Afreximbank’s commitment to ensuring that indigenous African businesses are able to play a dominant role in the operations of specialized oil and gas assets in an industry hitherto dominated by oil companies. international ”, said Professor Benedict Oramah, President of Afreximbank, one of the most active development banks in supporting the African private sector. “TNOG as the operator of the OML 17 will invest in accelerating the ramp-up of production, thereby increasing foreign exchange earnings and employing more Africans. It fits our mandate. We congratulate Heirs Holdings for raising the African flag even higher, ”Mr. Oromah continued.

For his part, the president of Heirs Holdings, Tony Elumelu, believes that this transaction demonstrates the opportunities of Nigeria. “Our acquisition of OML 17 and important related assets significantly advances Heirs Holdings’s strategic vision to create the leading integrated energy company in Africa. We are building a business that will ensure that African natural resources power African power grids and ensure value creation in Africa ”. And the banker to thank Afreximbank and President Oramah for their strong support.

Afreximbank is a key financial group in the African oil and gas industry through reserve-based lending and pre-export financing structures in Nigeria, Egypt, Equatorial Guinea, Ghana, Senegal, Republic of Congo, in Angola, South Sudan, etc. 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.

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