Oando Plc, a leading energy company, announced that its upstream subsidiary, Oando Oil Limited (OOL), has successfully upsized its reserve-based lending (RBL2) facility to $375 million. OOL, which holds a 20% interest in the OMLs 60-63 joint venture, reduced the original $525 million facility, secured in 2019, to $100 million by the end of 2024, paving the way for this refinancing.
Led by the African Export-Import Bank (Afreximbank) with support from Mercuria Asia Resources PTE Limited, the transaction is geared at strengthening Oando’s capital structure and supports its goal of reaching 100,000 barrels of oil per day and 1.5 billion cubic feet of gas per day by 2029.
This development follows Oando’s acquisition of Nigerian Agip Oil Company Limited in August 2024. following the acquisition Oando now manages a portfolio with approximately 1 billion barrels of oil equivalent in 2P reserves, 40 discovered oil and gas fields (24 in production), over 1,250 kilometers of pipelines, multiple flow stations, three gas processing facilities, a major export terminal, and two power plants with a combined 1 GW capacity.
An RBL is a type of loan commonly used in the oil and gas industry, where the borrowing capacity is determined by the value of a company’s proven oil and gas reserves (referred to as 2P reserves—proven and probable). The loan is repaid using cash flows generated from the production of these reserves.
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