Standard Bank has completed a $250 million financing facility for Nigeria’s oil and gas independent, Aradel Energy Limited, to support its strategic expansion and asset acquisition plans.
The transaction was led by Stanbic IBTC Capital Limited and Stanbic IBTC Bank Limited, with Standard Bank of South Africa Limited acting as global coordinator and bookrunner, people familiar with the matter said on Tuesday.
The facility will fund Aradel Energy’s purchase of an additional 40% stake in ND Western Limited from Petrolin Trading Limited, refinance existing loans, and increase production from the company’s current asset base.
Aradel Energy is a wholly owned subsidiary of Aradel Holdings Plc and operates the Ogbele and Omerelu onshore marginal fields, along with OPL 227 in shallow water.
Prior to the transaction, Aradel Energy held 41.67% of ND Western. Following the acquisition, its stake rose to 81.67%, giving the company a stronger position in key Nigerian energy assets.
ND Western holds 45% of OML 34 and 50% of Renaissance Africa Energy Company Limited.
Renaissance operates the Renaissance joint venture and controls 30% of one of Nigeria’s major energy portfolios.
Why Aradel Energy increased its stake in ND Western
The acquisition raised Aradel Energy’s indirect equity in Renaissance to 53.3%, giving the company greater influence over upstream operations and enhancing long term value potential.
Adegbite Falade, chief executive officer of Aradel Holdings Plc, said, “The acquisition bolsters Aradel Energy’s competitive positioning across Nigeria’s oil and gas value chain and supports our commitment to strategic growth, asset optimisation, and enduring value creation.”
Eric Fajemisin, executive director of corporate and transaction banking at Stanbic IBTC Bank, noted that the bank is proud to serve as a long term partner in supporting Aradel Energy’s growth ambitions.
Cody Aduloju, regional head for energy and infrastructure finance at Standard Bank, added,
“The transaction illustrates Standard Bank’s ability to deliver large-scale funding solutions and demonstrates our support to the fast growing indigenous companies of Nigeria’s oil and gas sector.”
How the financing will support production and growth
The $250 million facility will fund increased production from Aradel Energy’s existing assets and refinance prior loan obligations.
The strengthened stake in ND Western allows the company to influence operations in OML 34 and Renaissance, two strategic oil and gas ventures in Nigeria.
Apart from acquisition and financing, the deal gives Aradel Energy flexibility to execute its broader operational and growth objectives.
