Lekoil raises $3.5 million prepayment facility

Must Read

Africa’s biggest grocery retailer, Shoprite exits Nigeria

Shoprite is exiting the continent's most populated country, Nigeria, after 15 years of operation. The retail giant initiated a...

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is...

Life Lager Beer Lightens Niger Bridge (Photos)

Following the launch of a new bottle and the ‘Nduka’ campaign, Life Lager Beer has continued to spread its...

LEKOIL (AIM: LEK), the oil and gas exploration and production company with a focus on Nigeria and West Africa, is pleased to announce that LEKOIL Oil and Gas Investments Limited (“LOGL”), in which the Company has a 90 per cent. economic interest in has executed a prepayment facility agreement with Shell Western Supply and Trading Limited (“SWST”), a member of the Royal Dutch Shell group of companies (LSE: RDSA, RDSB).

This prepayment facility follows the renewal of the offtake agreement with SWST, which occurred in the second quarter of this year as announced on 26 June 2020, and will provide further short-term liquidity with the proceeds already received.

The facility size is US$3.5 million, and it has a tenor of five months and charges a market margin over LIBOR. The facility is repayable from future crude oil liftings. With the receipt of this facility, the offtake agreement between SWST and LOGL has been extended for an additional year and will now expire on 28 April 2022.

Lekan Akinyanmi, LEKOIL’s CEO, commented, “We are pleased to continue our relationship with Shell as a commercial and financial partner. Together with the recent cost reduction measures, we have undertaken, receipt of the proceeds of this prepayment facility will further strengthen our balance sheet to support the execution of our strategy.”

- Advertisement -
Lekoil raises $3.5 million prepayment facility - Brand SpurLekoil raises $3.5 million prepayment facility - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Lekoil raises $3.5 million prepayment facility - Brand SpurLekoil raises $3.5 million prepayment facility - Brand Spur

Latest News

MediaReach OMD Employs Data on Media Consumption to Aid Businesses in Navigating the New Normal

MediaReach OMD, a frontline marketing and media agency, had during this period of the coronavirus (COVID-19) pandemic, guided media...

Afrinvest Stock Recommendation for the Week August 3, 2020

A summary of the economic and market happenings within the week and stock recommendation within Afrinvest's coverage. Last week, the domestic equities market closed positive...

Chevron posts net loss of $8.3B in Q2 2020

Chevron Corporation today reported a loss of $8.3 billion ($(4.44) per share - diluted) for second quarter 2020, compared with earnings of $4.3 billion...

FBN Holdings Injects ₦25Billion Into Firstbank

FBN Holdings Plc (“FBNH” or “the Company”), has announced the injection of 25billion Naira equity capital into its commercial banking subsidiary, First Bank of...

British Airways August Schedule Sees Return To More Destinations

Throughout August, British Airways is resuming flying to more destinations, albeit with continued low frequencies while the impact of Covid-19 remains felt across the...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Lekoil raises $3.5 million prepayment facility - Brand SpurLekoil raises $3.5 million prepayment facility - Brand Spur