South Africa’s Standard Bank has reached financial close on a $250 million strategic financing facility for Aradel Energy Ltd, which the Nigerian oil company will partly use to fund its acquisition strategy, the companies said on Thursday.
Aradel Energy, one of Nigeria’s largest indigenous oil companies, is a major shareholder in a consortium that bought Shell’s onshore assets in the West African nation for $2.5 billion in 2024.
The Standard Bank facility, according to Reuters, will help fund Aradel Energy’s purchase of an additional 40% equity stake in ND Western Ltd from Petrolin Trading Ltd, the companies said in a statement.
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Aradel holds a 41.67% stake in ND Western. Upon completion of the transaction its interest will rise to 81.67%, it said.
ND Western holds a 45% participating interest in the OML 34 oil and gas asset and a 50% equity interest in Renaissance Africa Energy Company Ltd, which operates the Renaissance Joint Venture and owns 30% of a major Nigerian energy portfolio, the statement added.
As a result, Aradel Energy’s indirect equity interest in Renaissance will increase to 53.3%, strengthening its upstream position, it said.
The financing facility will also go towards refinancing existing loans and support increased output from Aradel’s current assets, according to a statement.
Aradel Energy, a wholly owned subsidiary of Aradel Holdings Plc, operates the Ogbele and Omerelu onshore marginal fields and OPL 227 in shallow-water terrain.
Standard Bank acted as global coordinator and bookrunner, leading the structuring, execution and funding of the facility.
