3 August 2014

Nigeria: FBN, Seven Others Syndicate U.S, $350 Million in Oando, Conocophillips Deal

More facts emerged at the weekend that eight Nigerian banks participated in the successful completion of Oando Energy Resources (OER) acquisition of Conoco Phillips Nigerian assets for about $1.6 billion.

According to a statement by FBN Capital Limited, OER successfully completed the acquisition of OMLs 60, 61, 62, 63, 131 and 145 (the target assets) located in a prolific oil and gas producing zone in the Niger Delta, through a combination of equity and debt.

While the Nigerian banks syndicated $350 million corporate facility, the debt portion comprising of a US$450 million RBL facility was provided by both Nigerian and offshore banks.

The funds were provided by First Bank of Nigeria Limited, Diamond Bank, FCMB, Ecobank, Zenith Bank, UBA, Vitol and Enterprise Bank, while FBN Trustees acted as security agent; First Bank of Nigeria Limited was Hedge Provider; and FCMB Capital Markets also as Joint Mandated Lead Arranger. FBN Capital Limited acted as Joint Mandated Lead Arranger, Facility Agent and Financial Modeling Bank on the Corporate Facility.

Commenting on the acquisition concluded on July 30, 2014, Adewale Tinubu, chairman, OER expressed belief "in the significant potential that the Nigerian oil and gas industry holds and are privileged to play a pivotal role in its consolidation, growth and development. We will continue to seek strategic opportunities that provide a platform for enhanced growth and value creation for our stakeholders".

For Pade Durotoye, chief executive of OER, the "transaction represents a transformational leap forward for our Company and is in keeping with our overall strategy to grow our portfolio of Nigerian-based assets by focusing on those opportunities that deliver high quality growth in reserves and production. Our management team is familiar with these assets and possess the managerial experience and technical expertise necessary to unlock their value for our shareholders."

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