Nigeria’s leading indigenous oil company Oando Plc says its upstream subsidiary, Oando Oil Ltd., has successfully increased its reserve-based lending (RBL2) facility in the African Export-Import Bank (Afreximbank) to $375 million.
In a press statement issued yesterday and seen by Energy in Africa, the company said the RBL2 loan upsizing follows a previous facility that started at $525 million in 2019 but was reduced to $100 million by the end of 2024.
Commenting on this development, Wale Tinubu, Group Chief Executive, Oando PLC and Executive Chairman of Oando Energy Resources said:
“We are pleased to have completed the upsizing of our RBL2 facility, a strategic milestone that reinforces our commitment as Operator of the Oando-NEPL JV to maximizing the value of our expanded asset portfolio,” Wale Tinubu, Group Executive Officer of Oando Plc said.
“We appreciate the continued partnership of Afreximbank and Mercuria, whose unwavering support underscores their alignment with our long-term focus on maximizing returns.”
According to the statement, this loan refinancing was led by Afreximbank with support from Mercuria and marks a key milestone in Oando’s strategic capital management.
Oando PLC maintains a strong portfolio of oil and gas assets in Nigeria and beyond, including interests in Angola and Trinidad and Tobago where it recently secured a lease to revive the Guaracara refinery.
The company claims Oando Oil (its upstream affiliate in Nigeria) currently operates one of the largest upstream asset portfolios in the country, with a 20% participating interest holder in the OMLs 60-63 JV
“Our Joint Venture holds extensive reserves with the potential to generate over $11 billion in net cash flows to Oando over the assets’ life,” Tinubu says.
The upsizing follows Oando’s acquisition of Nigerian Agip Oil Company in August 2024.
That acquisition made Oando one of Nigeria’s largest upstream operators, with approximately 1 billion barrels of oil equivalent (2P reserves), 40 discovered fields (24 producing), over 1,250km of pipelines, 3 gas processing plants, and 1 GW of power generation capacity.
Tinubu says this increased facility will boost the company’s working capital and offer fresh financial headroom to efficiently fund extraction and monetize these resources.
Specifically, it will support Oando’s ambition to achieve 100,000 barrels of oil per day (bopd) and 1.5 billion cubic feet (Bcf) of gas per day by the end of 2029, the statement said.
