Oando Secures $375 Million Financing Deal To Deepen Upstream Investments And Accelerate Growth

Oando Secures $375 Million Financing Deal to Deepen Upstream Investments and Accelerate Growth

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Oando Secures $375 Million Financing Deal to Deepen Upstream Investments and Accelerate Growth

Lagos, Nigeria — June 5, 2025 — In a significant development for Nigeria’s oil and gas sector, Oando PLC, one of the country’s leading indigenous energy solutions companies, has announced the successful upsizing and refinancing of its Reserve Based Lending (RBL2) facility to $375 million. The milestone deal, led by the African Export-Import Bank (Afreximbank) in collaboration with global energy and commodities group Mercuria, is poised to unlock a new chapter of upstream expansion and operational efficiency for the company.

Oando PLC, which maintains primary and secondary listings on the Nigerian Exchange and Johannesburg Stock Exchange respectively, revealed that the refinancing extends the maturity of the RBL2 facility to January 30, 2029. The financing structure is anchored on Oando’s robust portfolio of proven oil and gas reserves—estimated at 1.0 billion barrels of oil equivalent (Bnboe)—which form the Borrowing Base under the RBL model.

This successful refinancing follows years of aggressive debt reduction by the company. Originally valued at $525 million when the RBL2 facility was signed in 2019, the outstanding balance had been reduced to just $100 million by the end of 2024. This strategic deleveraging has not only strengthened Oando’s financial health but also positioned the company to secure enhanced financial backing for its next phase of growth.

Group Chief Executive of Oando PLC, Mr. Wale Tinubu, described the deal as a “strategic milestone” in the company’s journey. “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,” Tinubu said.

He further highlighted the significant economic potential of Oando’s joint venture assets, noting that they could generate over $11 billion in net cashflows over their productive life. “This working capital facility is a critical enabler towards efficiently extracting and monetizing these resources,” Tinubu added. “We appreciate the continued partnership of Afreximbank and Mercuria, whose unwavering support underscores their alignment with our long-term focus on maximizing production, optimizing asset performance, and delivering sustainable value to all stakeholders.”

The capital secured through the facility will be channeled into a broad array of high-impact initiatives. These include an aggressive drilling campaign to unlock new reserves, substantial infrastructure upgrades across key operational sites, and the deployment of cutting-edge technologies aimed at improving operational efficiency.

Oando’s long-term production target, as outlined in its strategic roadmap, is ambitious: the company aims to ramp up output to 100,000 barrels of oil per day (bopd) and 1.5 billion cubic feet (Bcf) of gas per day by the end of 2029.

This financial achievement builds on Oando’s major acquisition in August 2024, when it finalized the $783 million purchase of the Nigerian Agip Oil Company (NAOC) from Italian energy giant ENI. That acquisition significantly expanded Oando’s upstream footprint, adding 24 producing fields, around 40 exploration prospects and leads, 12 production stations, a 1,490-kilometre pipeline network, three gas processing plants, and the strategic Brass River Oil Terminal.

In addition, the deal brought two major power generation assets under Oando’s control—Kwale-Okpai Phases 1 & 2—with a combined installed capacity of 960 megawatts, cementing the company’s growing influence in Nigeria’s energy value chain.

Industry analysts say the successful refinancing reflects the growing confidence of international financial institutions in Oando’s strategic direction and the broader resilience of Nigeria’s energy sector. The upsized facility not only supports Oando’s ongoing projects but also signals optimism about the company’s ability to convert its expanded asset base into long-term value for stakeholders and the national economy.

As global energy markets navigate a delicate transition and demand for efficient, sustainable energy production intensifies, Oando’s strengthened financial position and strategic clarity may well position it as a beacon of local content excellence and operational innovation in Africa’s oil and gas landscape.