18th April, 2014
Oando Energy Resources has paid another $25million dollars to US oil company, ConocoPhillips, as part of the moves to acquire the ConocoPhillips assets in Nigeria.
The payment was a fulfilment of Oando’s promise late in March to pay additional deposit as the parties await the approval of Nigeria’s minister of petroleum, Diezani Alison-Madueke. The $25 million deposit was required to be paid following the inability of the parties to obtain the consent of the Honourable Minister of Petroleum Resources in Nigeria prior to 11 April.
OER had paid COP an initial deposit of $435 million.
ConocoPhillips assets are estimated to be approximately US$1.22 billion.
To conclude the deal, OER has also received commitment letters for up to $815 million of bank credit facilities, with $465 million drawn from Reserve Based Lending Facility, internationally placed and led by BNP Paribas, Standard Bank, and Standard Chartered Bank; and a $350 million Senior Secured Loan, jointly arranged locally in Nigeria, by FBN Capital and FCMB Capital Markets.
“Maximizing value for our shareholders is our ultimate goal, and through optimal financing we remain determined to conclude the COP Acquisition as soon as possible and increase our market share and infrastructure within the sector,” said Pade Durotoye, CEO of Oando Energy Resources.
Once the deal is concluded, OER’s daily production will substantially increase from 4,500 bpd to 45,000 bpd, and will place the company as the largest indigenous producer behind the International Oil Companies IOCs.