African Export-Import Bank (Afreximbank) has completed upsizing its reserve-based lending facility in favour of Oando Oil Limited to $375 million.

A statement by Afreximbank on Tuesday said Oando’s pay down of the original $525-million facility, secured in 2019, to $100 million in 2024 created significant headroom for refinancing and enhancing Oando’s financial flexibility.

The upsizing, led by Afreximbank, with support from Mercuria Asia Resources PTE Limited (Mercuria), which marks a key milestone in Oando’s strategic capital management, will support Oando’s ambition to achieve production of 100,000 barrels of oil per day and 1.5 billion cubic feet of gas per day by the end of 2029, effectively boosting Nigeria’s oil output and reinforcing the country’s position in the global energy market.

The upsizing is further expected to drive local economic growth by creating jobs, improving infrastructure, and fostering technological advancements in the oil and gas sector.

READ ALSO: Lagos Govt To Seal Shops Selling Styrofoam Packs, Plastic Straws, Others From July 1

Commenting on the development, Group Chief Executive, Oando PLC and Executive Chairman, Oando Energy Resources, Wale Tinubu said:

“We are pleased to have completed the upsizing of our RBL facility, a strategic milestone that reinforces our commitment as Operator of the Oando-NEPL JV to maximising the value of our expanded asset portfolio. Our Joint Venture holds extensive reserves with the potential to generate over $11 billion in net cash flows to Oando over the assets’ life. This working capital facility is a critical enabler towards efficiently extracting and monetising these resources. We appreciate the continued partnership of Afreximbank and Mercuria, whose unwavering support underscores their alignment with our long-term focus on maximising production, optimising asset performance, and delivering sustainable value to all stakeholders”.

In his own comments, Executive Vice President, Global Trade Bank, Afreximbank, Haytham Elmaayergi, described the transaction as a critical step in advancing Afreximbank’s strategy for promoting local content in Africa’s oil and gas sector.

“Afreximbank remains a longstanding financial partner to Oando PLC and its affiliates and has consistently supported the company’s growth and expansion initiatives. We are delighted that Mercuria, one of the world’s largest independent energy and commodities groups and one of our partners, has brought its global expertise and financial backing to the transaction, further strengthening Oando’s ability to execute its production growth strategy.”