London – LAWFUEL – Legal Newswire – DLA Piper’s oil and gas team has advised Nigeria’s largest energy group, Oando, on the purchase of interests in two offshore oil producing licences in Nigeria. The sale of the two licences by Shell was contested by a host of international oil companies since bidding started last year and saw Oando beat off a rival bid from CNOOC, China’s largest offshore producer. The deal is valued in excess of $600 million.
The transaction is of particular significance to Oando as it sees the Nigerian oil company considerably expand its range of operations in upstream interests. The deal also represents a major step forward by an indigenous company in Africa in acquiring local oilfield interests, making Oando the first Nigerian company to secure producing assets from a multinational oil company operating in Nigeria.
DLA Piper’s market-leading oil team advised on both the acquisition of the licences and on the financing for the deal alongside financial advisers Standard Chartered/Harrison Lovegrove. The financing involved a $200 million facility with Merrill Lynch and a syndicated senior facility arranged by three major international banks.
Charles Morrison, partner, commented: “This was a complex and challenging transaction, but one that has delivered a fantastic result for Oando. DLA Piper’s work in Africa’s oil sector is exciting and significantly boosts our broader energy credentials.”
DLA Piper’s team was lead by Charles Morrison, assisted by solicitors, Adam Blythe, Jon Hannah and Theo Naud.
