Petroleum Africa
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Monday, April 3, 2017
Lekoil’s wholly owned subsidiary, Lekoil Oil and Gas Investments Limited (LOGL), has agreed on an advance payment facility with Shell Western Supply and Trading Ltd., a member of the Royal Dutch Shell group of companies, in accordance with which Shell Western will provide LOGL with a facility of $15 million.
The facility has a maturity of three years and is repayable quarterly following a six-month moratorium with a market margin over LIBOR.
Lekan Akinyanmi, Lekoil’s CEO, said, “We are pleased to be working with Shell as a commercial and financial partner to enable the continued development at Otakikpo. The facility is a strong endorsement of our commercial production and secures funding which is non-dilutive to our shareholders. We believe that this relationship with a globally recognized O&G major will complement Lekoil in its long-term growth and aspirations.”
The news follows an offtake agreement for crude liftings from Lekoil’s Otakikpo field in Nigeria entered into between Lekoil and Shell Western.
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