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Seplat’s AGPC Raises $260m to Complete ANOH Gas Processing Project

Seplat’s AGPC Raises $260m to Complete ANOH Gas Processing Project

Seplat Petroleum Development Company Plc announced earlier this month that its Incorporated Joint Venture, the ANOH Gas Processing Company (AGPC), has successfully raised $260m in debt to fund completion of its ANOH Gas Processing Plant (ANOH).

The 300 Mmscf/d capacity ANOH plant, located on OML 53 in Imo State, is being built by AGPC, which is an IJV owned equally between Seplat and the Nigerian Gas Company (NGC), a wholly owned subsidiary of Nigerian National Petroleum Corporation (NNPC). Seplat and NGC have previously provided a combined $420 million in equity funding and the project is now fully funded.

The $260 million funding was provided by a consortium of seven banks: Stanbic IBTC Bank Plc (advisor), United Bank for Africa Plc, Zenith Bank Plc, FirstRand Bank Limited (London Branch) / RMB Nigeria Limited, The Mauritius Commercial Bank Limited, Union Bank of Nigeria Plc and FCMB Capital Markets Limited. It allows for an additional $60 million accordion at the time of completion to fund an equity rebalancing payment at that time, if considered appropriate. Funding commitments of more than $450 million were received by the company, which is a significant oversubscription and a strong sign of confidence in the project.

Following a cost optimization program, the AGPC construction cost is now expected to be no more than $650 million, inclusive of financing costs and taxes, significantly lower than the original projected cost of $700 million.

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Source: PetroleumAfrica

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