Nigeria’s leading energy company, Oando PLC, has announced the successful upsizing of its Reserve Based Lending (RBL2) facility to $375 million, marking a major milestone in the company’s long-term strategy to scale operations and boost energy output.
The refinancing, led by the African Export-Import Bank (Afreximbank) with support from global energy trader Mercuria, extends the facility’s final maturity to January 30, 2029. The loan, structured around Oando’s proven reserves—estimated at one billion barrels of oil equivalent—positions the company to further leverage its expanded asset base following recent major acquisitions.
Oando’s Chief Executive described the refinancing as a strategic move that will help unlock over \$11 billion in net cashflows over the life of its joint venture assets. The company has made significant progress in deleveraging its debt, reducing the original $525 million RBL2 facility signed in 2019 down to $100 million by the end of 2024. This disciplined debt management approach enabled the successful upsize and refinancing.
The newly secured funds will be channelled into key growth initiatives including intensified drilling campaigns, critical infrastructure upgrades, and advanced operational efficiency enhancements across the company’s energy portfolio. These efforts are part of Oando’s ambitious plan to reach 100,000 barrels of oil and 1.5 billion cubic feet of gas per day by 2029.
This development follows Oando’s landmark $783 million acquisition of Nigerian Agip Oil Company (NAOC) from Italian energy group ENI in August 2024. That acquisition significantly expanded Oando’s footprint in Nigeria’s oil and gas sector. It added twenty-four producing fields, forty exploration prospects, a vast pipeline network, three gas processing plants, the Brass River Oil Terminal, and power infrastructure with a combined capacity of 960MW.
The successful refinancing and recent acquisitions highlight Oando’s strategic intent to become a more dominant player in the region’s energy landscape. It also signals strong investor confidence in the company’s growth trajectory and capacity to deliver long-term value in Nigeria and beyond.
