First Hydrocarbon Nigeria Limited (“FHN” or the “Company”) has announced that it has completed the acquisition of a 45% interest in OML 26 from the Shell Petroleum Development Company of Nigeria Ltd ("SPDC"), Total E&P Nigeria Ltd (“Total”) and Nigeria Agip Oil Company (“Agip”). The Company also announced that it has reached completion on debt financing facilities totaling up to US$280 million. The first facility provides up to US$230 million of acquisition and development finance over five years with FCMB Capital Markets Limited (“FCMB”) as Global Coordinator and FCMB and Stanbic IBTC Bank Plc (“Stanbic”) as Mandated Lead Arrangers and book runners. The second facility provides US$50 million of mezzanine finance over six years from the Pan-African Investment Partners II (“PAIP II”) Fund, managed by Kingdom Zephyr Africa Management (“Kingdom Zephyr”).
FHN has announced the completion of its acquisition of SPDC, Total and Agip’s combined 45% equity stake in OML 26. The announcement follows the agreement signed in October 2010 and the receipt of all necessary Government and customary approvals.
The Nigerian Petroleum Development Company (‘’NPDC’’), the oil and gas exploration and production subsidiary of Nigerian National Petroleum Company (‘’NNPC’’), the Operator of OML 26 will partner with FHN in the re-development of the block. The partnership further re-enforces the Memorandum of Understanding (MOU) and Confidentiality Agreement (CA) signed between NPDC and FHN’s Technical Service Partner, Afren Plc, in November 2009.