Oando upsizes Afreximbank-led reserve-based loan to $375 million after $139 million profit

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At a Glance

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• Oando upsizes Afreximbank-led reserve-based lending (RBL2) facility to $375 million to bolster oil and gas production.
• Facility strengthens Oando’s financial flexibility following its $783 million acquisition of Nigerian Agip Oil Company.
• Oando targets 100,000 barrels of oil and 1.5Bcf of gas per day by 2029, supported by expansive infrastructure and reserves.

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Oando PLC, the Nigerian oil and gas firm led by Wale Tinubu—an energy tycoon—has upsized its Reserve-Based Lending (RBL2) facility to $375 million.

The refinancing, arranged by the African Export-Import Bank (Afreximbank) and backed by Mercuria Asia Resources, bolsters Oando’s liquidity as it targets aggressive production growth. 

The move follows a robust 2024 performance, with profit after tax surging 266.7 percent to N220 billion ($139.17 million) from N60 billion ($37.98 million) in 2023. It also comes on the heels of Oando’s $783 million acquisition of Nigerian Agip Oil Company in August 2024, which significantly expanded its upstream portfolio. 

The company now controls 2P reserves of about 1 billion barrels of oil equivalent, 40 producing fields, more than 1,250 kilometers of pipelines, and 1 gigawatt of power generation capacity—making it one of Nigeria’s most asset-rich upstream operators.

Strategic refinancing for production growth

The new $375 million facility replaces the company’s previous RBL, originally secured at $525 million in 2019 and paid down to $100 million by end-2024. The refinancing gives Oando greater working capital headroom to pursue its strategic goal of producing 100,000 barrels of oil per day and 1.5 billion cubic feet of gas per day by the end of 2029.

“This working capital facility is a critical enabler towards efficiently extracting and monetizing these resources,” said Wale Tinubu, Group CEO of Oando PLC and Executive Chairman of Oando Energy Resources. “Our Joint Venture has the potential to generate over $11 billion in net cashflows to Oando over the assets’ life.”

Partners aligned on African energy

Afreximbank, a long-standing financial partner to Oando, continues to play a central role in financing African energy independence. Mercuria’s participation—one of the world’s largest independent commodities groups—adds global financial heft to the venture, underscoring confidence in Oando’s long-term strategy.

This facility enhances Oando’s capital structure and is expected to accelerate monetization of the company’s extensive reserves in Oil Mining Leases (OMLs) 60–63. It also marks a vote of confidence in indigenous energy players scaling up operations in Africa’s largest oil-producing country.

Oando’s broader transformation

Under Tinubu’s leadership, Oando has evolved from a fuel marketing company to a vertically integrated energy group listed on both the Nigerian Exchange (NGX) and Johannesburg Stock Exchange (JSE). It operates across the energy value chain, from upstream exploration and production to midstream infrastructure, trading, and renewable initiatives.

In 2024, Oando’s total assets rose 140.43 percent from N2.78 trillion ($1.7 billion) in 2023 to N6.43 trillion ($4.1 billion) in 2024. However, retained earnings plunged from N74.01 billion ($46.88 million) to an accumulated loss of N215.88 billion ($136.83 million), highlighting the financial strain of its recent expansion, as aggressive capital investments and acquisition costs weighed on internal reserves despite a surge in profitability.

The company is also investing in Nigeria’s energy transition with bold plans in solar and gas development, including a target of becoming a net-zero emissions company.

The latest capital injection positions Oando to not only optimize legacy assets but also explore new opportunities across Africa’s fast-evolving energy landscape.