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Lekoil secured $184m to finance drilling at OPL 310

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Lekoil secured $184m to finance drilling at OPL 310

LEKOIL has secured $184 million to finance the appraisal drilling and initial development programme activities on the Ogo field within Oil Prospecting Lease, OPL 310.

According to a report by Vanguard, the company stated: “Lekoil 310 Limited, a wholly-owned subsidiary of LEKOIL, has entered into a binding loan agreement with the Qatar Investment Authority, the sovereign wealth fund of the State of Qatar for $184.0 million.

“The Facility will be disbursed in five tranches over 11 months, with the first drawdown intended to occur in February 2020. The Company looks forward to providing further details on the intended work programme in short order. The tranching of the drawdown of funds under the terms of the Facility is expected to enable LEKOIL to meet the costs commitments under the envisioned work programme as and when they arise. “The Facility, which has a tenure of seven years from the date of first disbursement, is secured against, amongst other things, the shares and assets of Lekoil 310 Limited and Mayfair Assets and Trust Limited and includes a moratorium on both the interest and principal repayments commencing from the date of the Facility until six months after the commencement of commercial sale of production from the field.”

“Repayment of the principal and interest will occur subsequently, in equal instalments, on a semi-annual basis. LEKOIL holds its interest in OPL 310 through Mayfair and Lekoil 310. The Facility is not secured against any other assets or interests of the Company, including its interest in the producing Otakikpo marginal field. “The annual interest rate payable on amounts drawn under the Facility is 3.72 per cent. With an upfront fee of 2.75 per cent of the amount drawn under the Facility which is payable upon drawdown of the Facility. “A Debt Service Reserve Account will be established twelve months after the end of the moratorium period with a one-off amount equal to six (6) months of debt service standing to its credit. The Company will be required to meet a number of covenants on an ongoing basis in order for the Facility to remain in good standing, and adhere to QIA’s policies on procurement, environment and social responsibility and anti-corruption.

he Facility is subject to an event of default clauses, and a provision that the employment of the Company’s CEO cannot be terminated without good cause during the term of the Facility. “The Facility was arranged by Seawave Invest Limited, an independent consultancy firm specialising in cross-border transactions with an exclusive focus on Africa. After deducting the commission payable to Seawave by LEKOIL for arranging the Facility, and the upfront fee payable by LEKOIL to the QIA as set out above, the net proceeds of the Facility available to the Company are approximately $174.3 million. Lekan Akinyanmi, LEKOIL’s chief executive officer, said: “Following the recent achievements of the OPL 310 license extension and the securing of funding for the appraisal drilling and development programme, we are delighted to have made strong progress, as promised, towards the start of the appraisal drilling programme on Ogo. “We will continue to work closely with our partner and the Operator of the OPL 310 License, Optimum Petroleum, as we pursue value for our shareholders.”

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SPONSORED: CALL FOR SMALL GRANT APPLICATION

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Women United for Economic Empowerment (WUEE) is a non-governmental organization with a mission to promote women/children rights, human development to the rural/urban poor women, youth, children and other vulnerable groups. WUEE in partnership with United Nations Democracy Fund (UNDEF) announces a Call for small grant application for interested and eligible CSOs/CBOs in Rivers and Akwa Ibom States, on STRENGTHENING GOOD GOVERNANCE AND DEMOCRATIC PROCESSES AT THE LOCAL LEVEL IN NIGERIA

Purpose for Fund

The project seeks to increase the capacities of 20 civil CSOs/CBOs and Local Government Chairmen in order to help them fulfill their roles and responsibilities more effectively in a democratic system. It is meant to strengthen good governance and democratic processes at the local level in Nigeria and to increase citizen participation. The project shall be conducted in Rivers and Akwa Ibom States. Trained representatives of selected CSOs and CBOs shall in conjunction with local stakeholders organize civic education programs for Twenty Thousand (20,000) local citizens in their local communities (1,000 per CSO/CBO), in order to promote citizens’ understanding and participation in the democratic processes.

MINIMUM ELIGIBILITY

Applicants must:

  • Be Not-for-profit organizations.
  • Have expertise in governance programming.
  • Have presence in the Local Government/community in which the program will be conducted.
  • Be registered with the Corporate Affairs Commission (CAC).
  • Have a track record of working with indigenous women, youth, persons with disabilities (PWD).
  • Be willing to comply with all technical and financial requirements for participation in the program, including reporting and documentation of project activities, communication strategy and capacity development opportunities.
  • Be willing to participate in assessments, trainings, workshops, meetings and other activities considered important for achieving project goal.

SUBMISSION INFORMATION:

Interested organizations shall submit 4 hard copies of grant proposal including Certificate of registration with CAC to Women United for Economic Empowerment Office located at No. 70 Nwaniba Road, Uyo, Akwa Ibom State and soft copy via Email: wuee2002@yahoo.com or wuee2002@gmail.com. Applications must be received not later than Thursday, 13th August, 2020 at 16.00 hrs.  No late application will be accepted

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Nigerian stock market opens with N119 billion loss

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Nigerian equities market resumed trading on Monday with a loss of 0.91 per cent as a result of profit taking in some blue chips.

Speficially, the All-Share Index which opened the week at 25,182.67 lost 228.35 points or 0.91 per cent to close at 24,954.32.

Accordingly, Month-to-Date and Year-to-Date losses increased to -1.2 per cent and -7.0 per cent, respectively.

Also, the market capitalisation shed N119 billion or 0.91 per cent to close at N13.017 trillion against N13.136 trillion posted on Thursday.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; MTN Nigeria Communications (MTNN), BUA Cement, Zenith Bank, Ecobank Transnational Incorporated and Guaranty Trust Bank.

Analysts at United Capital Plc said: “Looking ahead, we expect the market to remain volatile, as investors lock funds in cheap and fundamentally sound stocks, while taking profit on some stocks that gained last week.”

Consequently, market breadth closed negative with 16 stocks compared with 25 decliners.

Prestige Assurance led the losers’ chart in percentage terms, dropping by 10 per cent, to close at 63k, per share.

Neimeth International Pharmaceuticals followed with 9.73 per cent to close at N2.32, while AIICO Insurance shed 9.32 per cent to close at N1.07, per share.

ETI dropped 7.34 per cent to close at N5.05, while UACN Property Development dipped 6.73 per cent to close at 97k, per share.

Conversely, Fidson Healthcare and Red Star Express led the gainers’ chart in percentage terms, appreciating by 10 per cent each to close at N3.30 and N3.63 per share, respectively.

Cornerstone Insurance followed with a gain 9.80 per cent to close at 56k, per share.

Honeywell Flour Mills rose by 9.78 per cent to close at N1.01, while Unity Bank appreciated by 8.77 per cent to close at 62k, per share.

In the same vein, the total volume traded declined by 29.51 per cent with an exchange of 237.65 million shares, worth N1.61 billion, and traded in 4,808 deals.

This was in contrast with a total of 337.13 million shares valued at N3.41 billion achieved in 3,880 deals on Thursday.

Transactions in the shares of FBN Holdings topped the activity chart with 24.35 million shares worth N128.76 million.

Zenith Bank followed with 24.14 million shares valued at N392.36 million, while FCMB Group accounted for 19.47 million shares valued at N33.48 million.

Caverton Offshore traded 17.37 million shares worth N39.02 million, while United Bank for Africa transacted 14.64 million shares valued at N95.74 million.

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