Seplat Petroleum Development Company Plc, a Nigerian independent energy company listed on both the Nigerian Stock Exchange and the London Stock Exchange, said its Incorporated Joint Venture (IJV), the ANOH Gas Processing Company (AGPC), has successfully raised US$260 million in debt to fund completion of its ANOH Gas Processing Plant (ANOH).
The 300 million standard cubic feet per day (MMscfd) gas capacity ANOH plant, located on oil mining lease (OML) 53 in Imo State, is being built by AGPC, which is an IJV owned equally between Seplat and the Nigerian Gas Company (NGC), an arm of the Nigerian National Petroleum Corporation (NNPC). Seplat and NGC have previously provided a combined US$420 million in equity funding and the project is now fully funded.
According to Seplat, the US$260 million 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, The Mauritius Commercial Bank Limited, Union Bank of Nigeria Plc and FCMB Capital Markets Limited. It allows for an additional US$60 million accordion at the time of completion to fund an equity rebalancing payment at that time, if considered appropriate. Funding commitments of more than US$450 million were received by the company, which is a significant oversubscription and a strong sign of confidence in the project.
Following a cost optimisation programme, the AGPC construction cost is now expected to be no more than US$650 million, inclusive of financing costs and taxes, significantly lower than the original projected cost of US$700 million, the company added.
ANOH is one of Nigeria’s most strategic gas projects. It will help Nigeria to accelerate its transition away from small-scale diesel generators to cleaner, less expensive fuels such as natural gas for power generation. Seplat is a leading provider of natural gas to Nigeria’s power sector, supplying about 30 per cent of gas used for electricity generation.
Commenting on the transaction, Managing Director of ANOH Gas Processing Company, Okechukwu Mba, said: “Successfully closing the US$260 million 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.”
For the Chief Executive Officer of Seplat, Roger Brown, “Completing the funding of ANOH is 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 the Nigerian Gas Company 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.”
