Seplat Petroleum Development Company Plc said that its Incorporated Joint Venture, IJV, ANOH Gas Processing Company, (AGPC), successfully raised $260 million in debt to fund completion of its ANOH Gas Processing Plant (ANOH).
Seplat is a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange and the London Stock Exchange.
The 300MMscfd capacity ANOH plant, located on OML 53 in Imo State, is being built by AGPC, which is an IJV owned equally between Seplat and the Nigerian Gas Company (NGC), a wholly owned subsidiary of Nigerian National Petroleum Corporation (NNPC).
Seplat and NGC have previously provided a combined $420 million in equity funding and the project is now fully funded.
The $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 $60 million accordion at the time of completion to fund an equity re-balancing payment at that time, if considered appropriate. Funding commitments of more than $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 $650 million, inclusive of financing costs and taxes, significantly lower than the original projected cost of $700 million.
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 around 30% of gas used for electricity generation.