THISDAY Awards: Nominees for Transaction of the Year

The Mobil-Seplat deal

The Mobil-Seplat deal is a strong contender for Deal of the Year. Recently, in a landmark transaction, Seplat Energy acquired ExxonMobil’s onshore assets in Nigeria for over $800 million. The deal not only marked a significant milestone in Nigeria’s energy sector but also underscored Seplat’s commitment to expanding its operations and increasing its oil production capacity.

The acquisition included the purchase of Mobil Producing Nigeria Unlimited (MPNU), which holds a 40 per cent operating stake in four OMLs. The deal is expected to increase Seplat’s production capacity to approximately 120,000 barrels of oil equivalent per day.

Overall, the Mobil-Seplat deal is seen as a game-changer for Nigeria’s energy sector, and its impact will likely be felt for years to come.

Agip-Oando deal

Oando’s acquisition of Nigerian Agip Oil Company (NAOC) from Eni, has been variously described as a landmark transaction. A deal worth around $783 million, it marked a significant milestone in Oando’s strategy to expand its upstream operations and strengthen its position in Nigeria’s oil and gas sector.

The acquisition increased Oando’s participating interests in OMLs 60, 61, 62, and 63 from 20 per cent to 40 per cent. The deal has been recognised as a game-changer in the industry, with Oando winning the “Deal of the Year” award at Africa Energy Week 2024.

The acquisition is expected to contribute significantly to Oando’s cash flow and increase the company’s total reserves by 98 per cent. Oando plans to double its oil output to 100,000 barrels per day.

TotalEnergies-Chappal Transaction

TotalEnergies’ successful divestment of its 10 per cent stake to Chappal Energies for $860 million makes it a strong contender for Deal of the Year.   The acquisition of key TotalEnergies’ assets by the company provides Chappal Energies with new opportunities for growth and expansion in Nigeria’s energy sector.

The acquisition is expected to raise Nigeria’s oil production in several ways and contribute to Nigeria’s overall oil production. It will also bring in new investment and expertise, which can help to improve the efficiency and productivity of the acquired assets. This, in turn, can lead to increased oil production.

Shell-Renaissance SPA

Underscoring what has been described as their collective resilience after an initial rejection, Shell and Renaissance Consortium recently got the approval of the federal government for a Sale and Purchase Agreement (SPA).

The deal marked a significant milestone in the country’s energy sector, as it increased local ownership and participation in the industry.

Through the deal, the Renaissance Consortium, comprising ND Western, Aradel Holdings, and Waltersmith, First E&P, Petrolin, acquired Shell’s 30 per cent stake in 19 Oil OMLs and related infrastructure.

This acquisition is expected to have a positive impact on Nigeria’s energy sector, as it will increase local content and participation, raise oil production capacity as well as increase revenue for the country.

BANK OF INDUSTRY (BoI)

The Bank of Industry (BoI) is the country’s oldest, largest and most successful Development Finance Institution (DFI) with the mandate to transform the country’s industrial sector by providing financial assistance for the establishment of large, medium and small enterprises, and rehabilitation of ailing ones; as well as drive expansion, diversification, and modernisation, of existing enterprises.

Under the leadership of its current Managing Director/Chief Executive, Dr. Olasupo Olusi, BoI has supported projects with potential developmental impact, and the capability to generate considerable multiplier effects such as industrialisation, job creation, and poverty alleviation, all of which would have significant positive effects on the socio-economic condition of Nigerians.

The DFI has continued to support growth across various sectors with particular focus on MSME, gender businesses, infrastructure, youth development, technology, climate and sustainability.

The bank recently concluded a €2 billion senior phase global loan syndication – representing an oversubscription from International financial markets.

The facility included a fully guaranteed and a partially guaranteed tranche by Africa Finance Corporation (IFC).

Previously BoI had raised

€1billion via a Term Loan syndicated facility in July 2022, which had been successfully repaid in July 2024. The performance of the syndication remained a mark of confidence in the bank and the Nigerian economy by foreign investors who perceive a bright future for the country.

Furthermore, the IFC announced that it was set to onboard BoI and some deposit money banks to enable them access long term, low interest funding to support Nigeria’s fragile industries.

BoI also signed a $50 million portfolio guarantee agreement with Guarantee Fund (AGF) to unlock unprecedented financing to for women entrepreneurs, Micro, Small, and Medium Enterprises (MSMEs), and green businesses in the country.

The portfolio, which is in support of the African Development Bank (AfDB)’s Affirmative Finance Action for Women in Africa (AFAWA), guarantees of up to N75 billion, and remains a landmark initiative that ushers a new chapter for small businesses which have struggled with limited access to finance, and unlocks unprecedented opportunities for small businesses.

The bank has also disbursed over N496.72 billion loans to 75,809 beneficiaries including large, medium, small and micro enterprises in 2023.