Oando Upsizes Afreximbank Loan to $375 Million, Fuels Expansion of Massive Oil Portfolio

Oando PLC has announced the successful upsizing of its reserve-based lending facility (RBL2) to $375 million. The funding, led by the African Export-Import Bank (Afreximbank) with co-support from global commodities powerhouse Mercuria, marks a significant financial milestone for the Nigerian energy company’s upstream growth ambitions.

The RBL2 facility was originally structured at $525 million in 2019 but had been paid down to $100 million by the end of 2024, enabling substantial refinancing headroom. The newly upsized loan will support Oando’s target of producing 100,000 barrels of oil per day (bopd) and 1.5 billion cubic feet of gas per day by 2029.

The facility strengthens Oando’s post-acquisition strategy following its 2024 purchase of Nigerian Agip Oil Company. That transaction positioned the company as one of Nigeria’s largest upstream operators, with an estimated 2P reserve base of 1 billion barrels of oil equivalent (boe) and critical infrastructure including 24 producing fields, over 1,250 km of pipelines, gas plants, a major export terminal, and two power stations.

Wale Tinubu, Group Chief Executive of Oando PLC, described the loan as “a strategic milestone” and praised the continued support of Afreximbank and Mercuria. “Our joint venture assets have the potential to generate over $11 billion in net cash flows to Oando. This working capital facility is a critical enabler for efficiently extracting and monetising these resources,” he said.

The deal reflects Afreximbank’s deepening role in supporting African corporates and underscores Mercuria’s global commitment to energy development. For Oando, it reinforces financial flexibility amid a bold drive to monetise its vast hydrocarbon reserves and deliver sustained shareholder value.