Seplat Petroleum Development Company Plc has announced a $260m in debt to fund completion of its ANOH Gas Processing Plant and drive energy transition in Nigeria.
Its Incorporated Joint Venture raised the fund, the Nigerian independent energy company disclosed in a statement on Monday.
“The 300MMscfd capacity ANOH plant, located on OML 53 in Imo State, is being built by AGPC, an IJV owned equally by Seplat and the Nigerian Gas Company,” the company explained.
It hinted that the funding was provided by a consortium of seven banks, Stanbic IBTC Bank Plc (advisor), United Bank for Africa Plc, Zenith Bank Plc, FirstRand Bank Limited (London Branch)/RMB Nigeria Limited.
Others were The Mauritius Commercial Bank Limited, Union Bank of Nigeria Plc and FCMB Capital Markets Limited.
It also stated, “Following a cost optimisation programme, the AGPC construction cost is now expected to be no more than $650m, inclusive of financing costs and taxes, significantly lower than the original projected cost of $700m.”
ANOH is one of Nigeria’s most strategic gas projects.
Managing Director of AGPC, Okechukwu Mba, said, “Successfully closing the $260m debt facility means that the ANOH project is now fully funded. Once operational, AGPC will be a significant supplier of gas to Nigeria’s power sector, supporting local employment and the cleaner generation of power for Nigerian homes and businesses. We conservatively estimate that the gas from AGPC will be enough to generate electricity for more than five million people.”
The Chief Executive Officer of Seplat, Roger Brown, said completing the funding of ANOH was an important milestone for AGPC.
“The ANOH development is one of the government’s Seven Critical Gas Development projects, and our involvement provides a clear path towards strengthening Seplat’s position as Nigeria’s leading indigenous diversified energy producer. It will help us drive, alongside our government partners, Nigeria’s transition to cleaner, less expensive power generation.
“We are extremely proud to partner with NGC in this strategically important project, which will create jobs and prosperity in the Nigerian economy.
“Seplat will continue to diversify its business and invest in gas to help Nigeria develop its own natural resources, which, in turn, will drive more sustainable social and economic growth for a young, rapidly growing population,” Brown added.
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