Seplat Petroleum Development Company Plc on Monday said its Incorporated Joint Venture (IJV), ANOH Gas Processing Company (AGPC) has raised $260 million fund to complete the ANOH Gas Processing Plant.
The 300MMscfd capacity plant located on OML 53 in Imo State, is being built by AGPC, owned equally by Seplat and the Nigerian Gas Company (NGC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).
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Seplat and NGC have previously provided $420m equity funding for the project, a statement said.
The $260m funding was provided by a consortium of seven banks: Stanbic IBTC Bank Plc (advisor), United Bank for Africa Plc, Zenith Bank Plc, FirstRand Bank Ltd (London Branch) / RMB Nigeria Ltd, The Mauritius Commercial Bank Limited, Union Bank of Nigeria Plc and FCMB Capital Markets Ltd.
It allows for additional $60m accordion at the time of completion to fund an equity rebalancing payment at that time, if considered appropriate.
The AGPC construction cost is now expected to be no more than $650m, significantly lower than the original projected cost of US$700m.
Commenting, Chairman of AGPC, Yusuf Usman, said the financing agreement “will significantly contribute to the realization of the Federal Government’s initiatives towards increasing natural gas utilization in the domestic market.”
