Eroton signs $750m deal with Afreximbank

By Babajide Komolafe

Eroton Exploration & Production Company, an indigenous oil and gas firm, has signed a N750 million facility support deal with the African Export-Import Bank (Afreximbank) to finance oil exploration.

Other parties in the deal are Shell Western Supply and Trading and Midwestern Oil & Gas Company Limited.

The agreement  was concluded at a signing ceremony yesterday, in Durban, South Africa on the sidelines of the ongoing second intra-Africa trade fair.

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Eroton is a major upstream oil and natural gas exploration and production company. The company, in 2015, acquired 45 per cent stake in Oil Mining Lease 18 (OML 18). The OML 18 oil field is situated in the Eastern Niger Delta and covers a total area of 1,035 SQKM in an onshore swamp terrain.

The $750 million facility, according to the agreement, is to finance the acquisition of 100 per cent of the shares in two Special Purpose Vehicles; Oil Mining Lease Under a Senior Secured-Reserve-Based lending facility and also to finance the prepayment of all Eroton’s outstanding exposures with its existing lender.

The deal was signed by Mr. Onajite Okoloko, Chairman of Eroton Exploration & Production Company Limited and Chairman of Midwestern Oil and Gas Plc, while Afreximbank’s Global Head of Clients Relations, Rene Awambeng, signed on behalf of the bank.

Vanguard News Nigeria

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