Oando Energy Resources (OER) has successfully completed the acquisition of Conoco Phillips interests in OMLs 60, 61, 62, 63, 131 and 145 (the Target Assets) located in a prolific oil and gas producing zone in the Niger Delta.
The landmark deal of approximately USD 1.6 billion was financed with a combination of debt and equity. The debt portion comprised of a US$450 million RBL facility provided by both Nigerian and offshore banks and a US$350 million Corporate facility provided by Nigerian banks, leveraging OER’s existing portfolio comprising OMLs 90, 13, 56 and 125/134.
FBN Capital Limited acted as Joint Mandated Lead Arranger, Facility Agent and Financial Modeling Bank on the Corporate Facility. The funds were provided by First Bank of Nigeria, Diamond Bank, FCMB, Ecobank, Zenith Bank, UBA, Vitol and Enterprise Bank. Other financial parties to the transaction include FBN Trustees as Security Agent; First Bank of Nigeria as Hedge Provider; and FCMB Capital Markets also as Joint Mandated Lead Arranger.
Speaking on the acquisition, Mr. Adewale Tinubu, Chairman, OER said “we believe in the significant potential that the Nigerian oil and gas industry holds and are privileged to play a pivotal role in its consolidation, growth and development. We will continue to seek strategic opportunities that provide a platform for enhanced growth and value creation for our stakeholders”.
Commenting on the deal, Mr. Pade Durotoye, CEO of OER, said “This transaction represents a transformational leap forward for our Company and is in keeping with our overall strategy to grow our portfolio of Nigerian-based assets by focusing on those opportunities that deliver high quality growth in reserves and production. Our management team is familiar with these assets and possesses the managerial experience and technical expertise necessary to unlock their value for our shareholders.”
Kayode Akinkugbe, Managing Director of FBN Capital Limited said: “We at FBN Capital are very proud of the instrumental role we played in assisting OER with structuring and arranging the financing for the acquisition”. He went further to state that ‘we feel a strong sense of responsibility to support the development and growth of indigenous companies in the upstream oil and gas sector, and will continue to deploy our resources and expertise towards enabling these companies to meet their financial and strategic objectives”.
Speaking on the transaction, Patrick Mgbenwelu, Director and Head Debt Solutions, FBN Capital Limited, said: “we appreciate the responsibility and trust OER has placed with FBN Capital to advise and arrange the financing for the acquisition of the Conoco Phillips’s assets in Nigeria. FBN Capital remains committed to further strengthening this relationship, and to supporting OER and Oando plc in realizing their future financing goals and objectives”