AFC underwrites N11bn swamp rig acquisition by Depthwize

The Africa Finance Corporation (AFC) has underwritten USD65 million (about N11 billion) senior secured term loan facility for Depthwize Nigeria Limited (Depthwize), for the acquisition  and upgrade of swamp rigs.

AFC, in conjunction with JP Morgan, is the  co-mandated lead arranger for the transaction.
Depthwize operates the assets of Megadrill in Nigeria and it is expanding to meet expected new demand from both international Oil Companies (IOCs) and emerging indigenous Exploration and Production (E&P) companies.
Commenting on the loan facility, Andrew Alli, President and Chief Executive Officer, AFC, said  financing has been one of the primary challenges facing indigenous oil service companies in Africa.
He said that due to the  changing industry dynamics, and the anticipated opening up of new acreage for
exploration and development, the AFC is pleased to play a catalytic role in positioning strong indigenous companies such as Depthwize, which has the right operational and project management expertise to take advantage of  emerging opportunities in the Niger Delta.  
“Depthwize is well placed to  become one of the leading drilling contractors in Nigeria and we are pleased to be playing a part in the realization of this potential.”
Uche Dimiri, Managing Director of Depthwize said: “We are pleased to partner with AFC in building a world class oil service company through which the currently underdeveloped reserves of the Niger Delta can be brought into production with potential economic and social benefits for the country at large.”