Mercuria Participates in US$650 Million Financing for Oando’s Acquisition of Nigerian Agip Oil Company from Eni

Geneva, 23 Aug. 2024: – Mercuria Energy Group (“Mercuria”) has participated in a US$650 million financing arrangement to facilitate Oando PLC’s (“Oando”) acquisition of Nigerian Agip Oil Company Ltd (“NAOC”) from the Italian energy giant, Eni S.p.A.

Oando, a prominent energy solutions provider listed on the Nigerian Exchange Limited and Johannesburg Stock Exchange, has achieved a significant milestone with this acquisition, which aligns with its long-term strategy to expand upstream operations and strengthen its presence in the Nigerian energy sector.

Mercuria played a pivotal role by structuring and underwriting a US$150 million facility to underpin the financing package, demonstrating its commitment to supporting key strategic initiatives in the global energy market.

African Export-Import Bank (“Afreximbank”) also played a critical role by arranging a US$500 million reserve-based lending facility, with participation from Indorama Eleme Petrochemicals Limited.

This acquisition is expected to boost Oando’s production capacity from 20,000 to 60,000 barrels of oil equivalent per day (kboepd), significantly enhancing Nigeria’s oil output and reinforcing its role in the global energy landscape. The transaction is also poised to drive local economic growth by creating jobs, improving infrastructure, and advancing technological development in the oil and gas sector.

The closing ceremony, held in London on August 22, 2024, was attended by key representatives from all parties involved. Leading the Oando delegation was Mr. Wale Tinubu, CON, Group Chief Executive, accompanied by senior officials from Eni, including Guido Brusco, Group Chief Operating Officer. Mercuria was represented by Luke Woodard, Managing Director of Investments & Structuring, and Daniel Balint. Afreximbank’s delegation included Mr. Peter Adeshola Olowononi, Head of Client Relations, Anglophone West Africa, and Mrs. Ketiwe Lwando, Manager of Structured Trade & Commodity Finance.

Mr. Wale Tinubu remarked, “Today’s announcement marks the culmination of ten years of dedication and resilience. This acquisition is a win for Oando and for every indigenous energy player in Nigeria, as we assume a pivotal role in the nation’s upstream evolution. Our immediate focus will be on optimizing the potential of these assets, advancing production, and aligning with our strategic objectives, while prioritizing responsible practices and sustainable development to benefit our host communities and the environment.”

ENDS