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ANOH midstream gas processing plant in Nigeria – A&O advising the lenders

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Allen & Overy has advised a consortium of banks on the USD260 million limited recourse debt financing to fund ANOH Gas Processing Company’s (AGPC) Assa North-Ohaji South (ANOH) midstream gas processing plant project in Nigeria. The financing also includes an additional USD60m facility which may be used at completion to fund an equity rebalancing payment.

ANOH is one of the largest indigenous greenfield gas condensate development projects being undertaken in Nigeria. The project involves the development of OML 53’s share of the Assa North-Ohaji South gas and condensate field which straddles OML 21 and OML 53 located in Eastern Nigeria.  

AGPC, incorporated in 2017, is responsible for the project development, operation and maintenance. Seplat holds a 50% stake in AGPC, while Nigerian Gas Company (NGC), a wholly owned subsidiary of Nigerian National Petroleum Corporation (NNPC), holds the remaining stake.

The project financing involved a commercial facility provided by a combination of seven international and Nigerian commercial banks with flexibility for AGPC to incur future expansion debt.

When fully operational, AGPC will be a significant supplier of gas to Nigeria’s power sector, supporting local employment and cleaner generation of power for Nigerian homes and businesses.

Commenting on the completion of the financing, Andrew Castle, a partner in A&O’s energy and projects group in London, said: “Supporting our clients in getting complex infrastructure financing deals such as these across the line is what A&O specialises in, but in this case it is particularly pleasing that there is an added benefit to the wider Nigerian economy.

“When complete, the project will help monetize the significant gas resources in the ANOH field, help increase gas supply in the Nigerian domestic market, and unlock over 1,200MW of gas-constrained power generation capacity in the country.”

The A&O team was led by partners Andrew Castle and Kathleen Wong, supported by counsel Eleanor Milne and associates Chinedu Ihenetu-Geoffrey, Milan Sykora and James Pritchard.

Supporting our clients in getting complex infrastructure financing deals such as these across the line is what A&O specialises in, but in this case it is particularly pleasing that there is an added benefit to the wider Nigerian economy.

Andrew Castle, partner, A&O energy and projects group, London