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HomeNewsAfreximbank signs $300 million deal to boost Republic of Congo’s crude oil...

Afreximbank signs $300 million deal to boost Republic of Congo’s crude oil production

THE African Export-Import Bank (Afreximbank) in Brazzaville has inked a historic agreement with Trident OGX Congo, paving the way for a $300 million reserve-based lending facility. The transaction is poised to have a transformative impact on the Republic of Congo’s crude oil production, with expectations of boosting output by an estimated 30 percent.

The agreement was signed by Ibrahima Bagarama, Regional Chief Operating Officer – Central Africa, representing Afreximbank, and John Chisholm and Olivier Okota, members of the Board of Directors and Director General of Trident OGX Congo, respectively. The funding facility will empower Trident OGX Congo to execute a capital expenditure programme focused on increasing crude oil production from the Mengo-Kundji-Bindi II (MKB II) oil fields.

Under the terms of the agreement, Trident OGX Congo, a wholly owned subsidiary of Trident OGX International Pte Ltd, Singapore, will use the proceeds from the facility to partially finance and initiate a seven-year development programme in the MKB II permit area. This area is strategically located in the coastal plains between Pointe Noire, the foothills of the Mayombe mountains, and the border with Angola’s Cabinda enclave.

Upon the successful implementation of the field development plan, the transaction is anticipated to elevate the Republic of Congo’s crude oil production level by as much as 30 percent. Furthermore, it is expected to generate a significant number of employment opportunities within the country’s economy.

During the signing ceremony, Benedict Oramah, President and Chairman of the Board of Afreximbank, reaffirmed the bank’s commitment to supporting African businesses in accessing markets, capital, and technology. He highlighted the significance of this partnership for the Republic of Congo and its oil and gas sector.

‘This important project, which promises to bring investment of about $1.5bn into Congo’s oil and gas sector, will generate significant revenues that will enable the government to create more jobs and provide more socio-economic infrastructure for the people of Congo,’ he stated. Oramah emphasised the adherence to environmental standards, particularly through the hydraulic fracturing process, and expressed gratitude to President Denis Sassou Nguesso for his vision and support.

The agreement is set to result in the creation of a substantial number of new jobs within the Republic of Congo and foster entrepreneurial opportunities for Congolese businesses. This collaborative effort is expected to lead to considerable GDP growth for the country.

In addition to the Trident Group, Société Nationale des Pétroles du Congo and Orion Group are also shareholders in the asset to be operated by Trident OGX Congo, further enhancing the collaborative approach to this significant project.