Nigerian independent Amni International, has secured a $270 million loan facility from Guaranty Trust Bank and a subsidiary of Royal Dutch Shell. The terms of loan will give Shell Western Supply and Trading sole access to the 16,000 barrels per day (bpd) of oil the company pumps in two fields off Nigeria’s oil-rich Delta region.
Production at offshore fields, including Amni’s Ima and Okoro/Setu, is difficult to maintain, but Amni said the loan would allow them to further develop the fields. The company also has an offshore concession in Ghana.
“We are excited to work with GT Bank and Shell as commercial and financial partners to enable the realisation of Amni’s ambitious plans for growth,” Amni’s Chief Executive Tunde Afolabi said in the statement.
Bigger oil companies and trading houses often extend financing to smaller oil and gas producers in deals that allow the financier preferential access to physical cargoes and give the recipient companies the cash they can use to develop and maintain their assets.
Earlier this year, Nigeria’s Shoreline agreed a similar type of deal worth $530 million with major oil trader Vitol, backed by several banks.