TEMPLARS advises Mercuria Energy Group on the financing for Oando plc’s acquisition of Nigerian Agip Oil Company Limited 

The Mercuria financing, together with a separate US$500 million reserve based facility arranged by the African Export-Import Bank, makes a combined US$650 million debt financing package utilised by Oando for the $783 million acquisition.

The transaction will triple Oando’s oil production from 20,000 to 60,000 barrels of oil equivalent per day and double its ownership interest in the NNPC/NAOC/Oando Joint Venture from 20 to 40 percent.

Mercuria’s participation in the combined financing demonstrates its continued “commitment to supporting key strategic initiatives in the global energy market.”

The TEMPLARS team that advised on the Transaction was led by Chike Obianwu (Deputy Managing Partner and Head of the Finance Practice Group) and Yemisi Awonuga (Partner and co-Head of the Energy and Natural Resources Practice Group). Chike and Yemisi were supported by Senior Associates Okabonye Chukwuani, Ifure Udofa and Damilola Oshodi as well as Associates Martins Eke Eziukwu, Mariam Adebayo and Omotayo Jimoh.

Commenting on the transaction, Chike Obianwu stated, “We are pleased to have advised Mercuria on this financing and to have played a critical role in assisting Oando in closing what is undoubtedly a transformative transaction for the group. Our role here once again demonstrates our market-leading position in the oil and gas sector in Nigeria and Ghana, and we are grateful as always for the confidence that our clients place in us to advise and assist on some of the most important and complex acquisitions and financings to have occurred in the sector over the last several years.”