Amni Petroleum Closes Afrximbank $635M Deal, Boosts Nigeria’s Export

Amni Petroleum, a non-governmental oil and gas company in Nigeria, has closed a $635M deal with the African Export-Import Bank (Afreximbank).

The deal was made as a result of the company’s drive to achieve sustainable gas development expansion.

Afreximbank signed a reserve-based lending facility term sheet with Amni Petroleum, noting that the deal will massively increase the company’s oil production while boosting gas exports and providing fuel for power generation.

With the $635M lending facility, the oil and gas company will fund capital expenditure in the Okoro and Tubu oil and gas fields, which are located in the eastern and south-eastern Niger Delta regions of the country.

The bank stated that the aim is to allow for Amni Petroleum to increase its oil production from about 10,000 barrels per day to 25,000 within 12 months.

Rene Awambeng, director and global head of client relations at Afreximbank, said that the deal will increase gas production for power generation across West Africa, which serves as a cleaner alternative to coal or oil.

The director also noted that the expected gas generated will also be exported in the form of LNG.

“The Tubu gas is a game changer. This funding will allow for its full potential to be exploited and exported at the regional and international level. It will help supply the West African sub-region with cleaner energy,” Awambeng said.

Following the efforts by Western countries to halt overseas support for fossil fuels, there has been a growing demand for domestic energy financing on the continent.

Hope was restored when the formation of new energy held some prospects. This resulted in the signing of agreement between Afreximbank and the African Petroleum Producers Organisation in May.

However, while gas generally produces lower carbon emissions in energy generation than other fossil fuels, its wider role in the transition to net-zero is questionable.

Source: Oriental News

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