The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Energy finance: Oando makes history upstream in Nigeria

The financing of Nigerian energy company Oando’s acquisition of a 49.8% stake in two offshore oil blocks owned by Royal Dutch Shell was due to close at the end of March, according to Wale Tinubu, the company’s group chief executive.

The transaction marks the first time a local company has bought oil production assets from a multinational operating in Nigeria.

The $625 million deal consists of $250 million equity from Oando, a senior debt portion of $200 million linked to the field’s reserves, and a mezzanine portion of $175 million. Financing has been arranged by a consortium of banks led by Standard Chartered and including Merrill Lynch, Standard Bank and BNP Paribas. Both loans have a maturity of five years. The senior debt will be paid down on a quarterly basis from existing oil production. The mezzanine loan carries a higher interest rate, a moratorium on principal repayment in the first year and the option of deferred interest payments.

"Everything is fully underwritten," says Tinubu. Oando plans additional capital-raising, particularly in the local markets, although Tinubu is unwilling to divulge exactly what form it will take. "We will exploit and exhaust Nigerian opportunities," he says.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?