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Nigeria's Oando confirms raising $1.63B for Conoco assets acquisition

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January 12
9:40 PM 2014

Nigerian energy firm Oando Plc said it secured $1.63 to acquire the assets of ConocoPhillips in the country, wrote Bloomberg.

During an interview in Lagos, Oando investor relations head Tokunbo Akindele said the transaction is due to be completed at the end of January. He also said Oando is eyeing a total acquisition cost of around $1.65 billion, the report stated.

In December 2012, Oando said it entered a deal to buy ConocoPhillips' holdings in oil-production and offshore projects for $1.79 billion. The Nigerian firm is looking to become the top producer for the biggest oil exporter of Africa. Akindele also said the acquisition cost was lowered after taking out the Brass liquefied natural gas asset, the report explained.

The company shelled out $435 million for an initial deposit and in December, it added another $15 million. Akindele said the firm also closed $119 million via private placement, and $815 million worth of bank commitments. In addition, Oando raised $250 million after selling East Horizon Gas Co, the report detailed.

Akindele said the purchase of the assets is expected to boost the production of its unit, Oando Energy Resources, from 5,000 to around 50,000 barrels daily, Bloomberg reported.

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