Oando Secures Massive $375 Million Financing Boost, Targets 100,000 Barrels Daily
LAGOS – Nigerian energy giant Oando Plc has successfully secured a substantial $375 million capital injection from African Export-Import Bank and Mercuria, dramatically expanding its reserve-based lending facility as the company aggressively pursues ambitious production targets. The refinancing deal extends the facility’s maturity to January 2029 and positions Oando to achieve 100,000 barrels of oil per day by the end of the decade.
The funding triumph follows Oando’s transformative $783 million acquisition of Nigerian Agip Oil Company from Italian energy giant Eni in 2024, which doubled the company’s working interest and expanded its reserves to 1 billion barrels of oil equivalent. The fresh capital will fuel accelerated drilling campaigns, critical infrastructure upgrades, and advanced operational efficiencies across Oando’s expanded portfolio.
“This working capital facility is a critical enabler towards efficiently extracting and monetising these resources,” stated Group CEO Wale Tinubu, referencing the joint venture’s potential to generate over $11 billion in net cashflows over the assets’ lifetime. The company reported a staggering 267% increase in profit after tax for 2024, reaching N220 billion compared to N60 billion the previous year.
The successful refinancing underscores growing confidence in indigenous Nigerian operators and their ability to compete with international oil majors in complex upstream operations.
Source: nairametrics.com