Connect with us

Business

Lekoil secured $184m to finance drilling at OPL 310

Published

on

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.”

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Trusting Maritime, Nigeria Eyes Major Economic Growth in 2023 – SGF Mustapha

Published

on

Taking the maritime sector as economic anchor, the Federal Government says it is targeting placing Nigeria among the first 70 countries in the World Bank Ease of Doing Business index, a most sought-after economic feat globally, by 2023. The Secretary to the Government of the Federation (SGF), Mr. Boss Mustapha, stated this Saturday night in Lagos at the third edition of the annual Corporate Dinner and Merit Awards organised by the Nigerian Maritime Administration and Safety Agency (NIMASA).

That projection came as Minister of Transportation, Rt. Hon. Chibuike Rotimi Amaechi, said the transportation sector was being developed as a strategic driver of the President Muhammadu Buhari administration’s economic diversification and growth agenda. Amaechi said the government was focused on the establishment of a strong intermodal transport system that would facilitate seamless movement of goods and people and drastically reduce the cost of transportation and business, generally.

Mustapha, who chaired the evening of honours for outstanding maritime players, said recent improvements in the Nigerian maritime industry had positioned it as a viable guarantee of economic growth and wealth creation. He disclosed with delight that Nigeria had moved from 170 to 131 in the global ease of doing business table since Buhari established the Presidential Enabling Business Environment Council (PEBEC) in July 2016.

The council was set up to remove bureaucratic constraints to doing business in Nigeria and make the country an increasingly easier place to start and grow a business.

Mustapha said the PEBEC initiative, coupled with significant developments in ports and maritime, had engendered great improvements in ease of doing business in the country.

“In our bid to improve efficiency and productivity in the maritime industry and the country at large, the PEBEC was created to ensure an enabling environment for port efficiency. Government will continue to support the maritime sector because on it rests opportunities for wealth creation and economic growth,” he stated.

On his part, Amaechi said with a developed transport sector, “There will be increased productivity, which comes with creation of more jobs and production of more goods and services. All these will make the economy more competitive, reduce dependence on oil, and usher in economic growth. This is our target.”

According to him, “We are aware that transportation is key in any economic development plan. The major elements of production – raw materials, machines, people, finished products, etc. – have to be seamlessly moved from one point to the other as the need arises.

“The President Muhammadu Buhari government is implementing a transport policy, which entails linking all seaports in the country by rail, in line with global best practices. All over the world, the most efficient way to transport heavy cargo is by water and rail.

“We have a 25-year rail modernisation programme, involving the development of a comprehensive intermodal system. We are taking the rail from where the past governments stopped to the seaports. The Lagos-Kano rail line, which began from Ebute Metta, is being taken from Ebute Metta to Apapa seaport.

“We will take it from Tin Can and Apapa to connect the new Lekki port. The rail line from Lagos to Calabar links Port Harcourt, Onne, and Warri seaports. Our goal is to have a system where importers would bring in their goods and load them on the rail that takes them to the hinterland, thus, easing the pressure on the roads and increasing their longevity.”

On the economic significance of transportation, Amaechi said, “Adequate investment in transport infrastructure will enhance the efficiency, reliability, and capacity of the transportation system, which will, in turn, lead to lower transport costs, shorter transit times, increased business efficiency, and business expansion, as money previously spent on transport is ploughed back into business.”

In his welcome address, the Director-General of NIMASA, Dr. Dakuku Peterside, noted the significant change in the reputation of the Agency in the last few years. Dakuku said the burnished image was part of the fruits of the Management’s deliberate effort to change the old ways of doing things in the industry and the Agency, for the overall good of the economy.

He highlighted some of the achievements of the Agency in the last three years to include the Final Billing regime, which has significantly reduced turnaround time for all vessel billing transactions from reduced turnaround time for all vessel billing transactions from between five and 10 years to two weeks of the ship’s departure; increased tonnage, with Nigeria currently placing second in Africa, after Liberia; and reduction of turnaround time for issuance of Sailing Clearance from about one year to 14 days.

Other achievements of the Agency, according to Dakuku, include digital transformation; improved maritime safety, security, and domain awareness; the tripartite agreement by maritime stakeholders, which has ensured harmonious labour relations in the industry; renewed capacity building drive through implementation of a five-year Cabotage cessation plan; and enhancement of the Nigerian Ship Registry.

Highlights of the occasion included the conferment of awards to outstanding maritime industry players and staff of NIMASA. One hundred and eighty one staff of the Agency bagged long service awards for 15-30 years of service, with Mrs. Constance Omagbemi getting the coveted Employee of the Year.

GAC Shipping Company won the Overall Shipping Company of the Year, among eight awardees of the Industry Stakeholders Merit Award. They were Total Exploration and Production Company, AP Miller Terminal, Tin Can Island Container Terminal (TICT), and the Maritime Academy of Nigeria (MAN), Oron.

Others were West African Ventures, Awaritse Nigeria Limited, and Sea Navigation International Limited.

Six state governors graced the occasion, including the host governor, Mr. Babajide Sanwo-Olu, of Lagos State, who came with his deputy, Femi Hamzat, Governor Simon Lalong of Plateau State, Dapo Abiodun of Ogun State, Abubakar Sani Bello of Niger State, and Godwin Obaseki of Edo State. Governor Inuwa Yahaya of Gombe State was represented by the Deputy Governor, Manassah Daniel Jatau.

Other dignitaries included Chairman, Senate Committee on Marine Transport, Senator Danjuma Goje, who represented Senate President Ahmad Lawan; Chairman, House of Representatives Committee on Maritime Safety, Education and Administration, Lynda Ikpeazu; Minister of State for Health, Senator Olorunnimbe Mamora; Managing Director, Nigerian Ports Authority (NPA), Hadiza Bala Usman; and Managing Director of National Inland Waterways Authority (NIWA), George Muoghalu.

Continue Reading

Business

NERC approves increase electricity hike

Published

on

Court orders FG to publish details of runaway electricity contractors contractors

The Nigerian Electricity Regulatory Commission has approved an increase in electricity tariff by the 11 Electricity Distribution Companies (DisCos) in the country.

The directive on the new tariff regime for different DisCos and the category of customers was published on the NERC website on Saturday.

The directive was signed by the Commission’s Chairman, Prof. James Momoh, and Secretary, Mr. Dafe Akpedeye. The new directive, according to NERC, super ceded the earlier one issued on the matter, and “the takes effect from January 1.

The Commission noted that the order had taken into consideration, other actual changes in relevant macroeconomic variables and available generation capacity as of October 31, 2019. It said the order was in line with updating the Multi-Year Tariff Order (MYTO) operating -2015 Tariff Order for 2019 in line with the provisions of the amended MYTO Methodology. NERC said: “Projections are made for the variables for the year 2020 and beyond based on the best available information.

“The Commission, however, based adjustments in the tariff, on the relevant data obtained from the Central Bank of Nigeria and National Bureau of Statistics such as average monthly inflation rate of 11.3 percent, exchange rate of N309.97.”

According to the publication, the Abuja Electricity Distribution Company residential customers R3 previously paying N27.20 per unit are to now pay N47.09. NERC said the customers are now to pay N19.89 more per unit representing a 236.75 percent increase.

“The commercial customers C3 that paid N27.20 per unit in 2015, when the tariff was last adjusted and implemented are now to pay N47.09 in 2020,” it added. The Commission said for the Ikeja Electricity Distribution Company’s customers, the R3 category customers that were formerly paying N26.50 per unit are to now pay N36.92 per unit. The customers are, therefore, to pay additional N10.02 per unit, representing a 368.49 percent increase. “The commercial customers C3 that paid N24.63 per unit in 2015 are to now pay N38.14 per unit. “The customers are to pay additional N13.51 per unit representing 282.30 percent.

“The industrial customers of the IKEDC D3 that paid N25.82 per unit are now to pay N35.85 per unit.”

“The difference is now the additional 10.03 per unit, representing an increase of 357.42 percent.” NERC said Enugu Electricity Distribution Company residential (R3) customers that were paying N27.11 per unit in 2015 are to now pay N48.12 per unit.”

“The customers are to pay an additional N21.01 per unit, which translates to 229.03 percent. The Commission directed that “all DisCos are required to settle their market invoices in full as adjusted and netted off by the applicable tariff shortfall.” (NAN)  

Continue Reading

News