CDB contributes to $550 million syndicated bridge loan to help Shoreline Natural Resources Limited acquire a 45% stake in the offshore Oil Mining License 130 (OML 130)

📋 Staff Comments

1. OML 30 is located onshore in the delta region, covers 1,097 square kilometers and includes eight producing fields with oil and gas contained in numerous stacked reservoirs, and the acquisition Assets include a 45% interest in the segment of the Trans Forcados pipeline between the Eriemu Manifold and the Forcados River Manifold (known as the OML 30 Trans Forcados Pipeline Segment). OML 30, Nigeria, has gross proved and probable reserves of 1,114 mmbbls of oil, estimated by independent technical consultants RPS Energy Consultants Limited ('RPS Energy') and current production of c.35,000 bopd. The economic valuation of proved plus probable reserves is estimated at between US$3,089 million and US$3,789-million.
2. Shoreline Power Company Ltd is a subsidiary of Shoreline Energy International Ltd, and is a private sector power generation company in Nigeria and sub-Saharan Africa. Shoreline Energy International Ltd is a Nigerian holding company operating in Africa with a diversified portfolio in construction, oil & gas, and power & infrastructure.
3. Heritage Oil Plc is an independent upstream exploration and production company, listed on the London Stock and Toronto Exchange and is a member of the London FTSE 250 Index. It has a producing property in Russia and exploration projects in the Kurdistan Region of Iraq, Democratic Republic of Congo, Malta, Pakistan, Tanzania and Mali, and an equity investment in a Libyan oil services company.
4. McCarthy Tétrault LLP acted as English and Canadian counsel to Heritage Oil, as acquiror.
5. After the acquisition, the remaining 55% participating interest in OML 130 was held by the Nigerian Petroleum Development Company, a subsidiary of the Nigerian National Petroleum Corporation.
6. Standard Bank Plc also provided a $50 million letter of credit to Nigerian Petroleum Development Company, to cover the working capital requirements of Shoreline Natural Resources Limited under the joint operating agreement for OML 30. Heritage Oil agreed to provide cash collateral of $51 million to Standard Bank Plc to guarantee this letter of credit, which also covered any interest due under the letter of credit.

📚 Sources & References

• Standard Bank Group Annual integrated report 2012
• Shoreline makes NIgerian Acquisition
• Standard Bank Group leads US$550m Shoreline Natural Resources facility
• Kofo Dosekun
• The rising stars of African finance
• Heritage Oil Plc
• White & Case Advises Standard Bank on US$550 Million Financing for Heritage Oil Purchase of Nigerian Oil Assets
• Heritage Announces the Successful Completion of the Transformational Acquisition of a Major Interest in OML 30
• Stanbic IBTC Holdings PLC Annual report 2012
• Heritage Oil secures Niger Delta acquisition
• Nigeria: Shoreline Defends Acquisition of OML 30
• Partnership With Heritage Oil Says Tony Buckingham Not Security Threat
• Heritage Oil completes transformational US$850 million acquisition of an interest in a producing oil mining licence in Nigeria
• Shoreline gets syndicated facility
• Nigeria: Kola Karim - Shoreline's Acquisition of Oml 30 Legitimate and Transparent
• ICBC Standard Bank
• Standard Bank Group Ltd : Standard Bank Group leads US$550m Shoreline Natural Resources facility
• Shoreline oils way for $850m Nigerian acquisition
• Heritage Oil Plc: Proposed Rights Issue in Connection With the Proposed Acquisition of a Major Interest in OML 30
• Emerging Markets syndicated loans - news in brief
• May 3, 2013
• STANBIC IBTC HOLDINGS PLC CONSOLIDATED AND SEPARATE ANNUAL REPORT 31 DECEMBER 2015 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.