ConocoPhillips has operated in Nigeria for 46 years. Oando PLC said it has received offers of a credit facility of up to $815 million (N127.14billion) to enable it acquire ConocoPhillips’ $1.790 billion Nigerian onshore assets.
Agency reports say the American energy firm had agreed December last year to sell its stake in the Nigerian operations to Oando after 46 years of operation in the country.
It was gathered that Oando, which has already made an initial deposit of $400 million to ConocoPhillips, would use the loan facility to complete the payment for the assets.
The loan package comprise a $465 million Reserve Based Lending Facility by BNP Paribas, Standard Bank and Standard Chartered Bank, while additional sum of $350 million would come from a joint arrangement by First Bank Capital and First City Monument Capital.
Oando Chief Executive Officer, Pade Durotoye, is quoted by the agency as saying that the credit facilities were significant steps towards the buyout of the assets, adding that the company would proceed to the final stage of concluding the necessary discussions to put together the financing required for the purchase.
Reputed to be one of Nigeria’s leading integrated energy solutions providers, Oando is involved in the development of all aspect of Nigeria’s energy value chain in the upstream, midstream and downstream sectors of the petroleum industry, ranging from oil and gas exploration, production, marketing and distribution to power generation. www.premiumtimesng.com
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