Afreximbank and UTM Offshore to develop Floating Liquefied Natural Gas facility in Nigeria

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Home » News » Afreximbank and UTM Offshore to develop Floating Liquefied Natural Gas facility in Nigeria

UTM Offshore has inked an agreement with Afreximbank for the construction of a Floating Liquefied Natural Gas facility in Nigeria. The project is set to be located in Nigeria’s offshore Block OML 204, in Akwa Ibom State.

The agreement was signed in Ghana at the end of June 2023 by Julius Rone, CEO of UTM Offshore. And Denys Denya, Executive VP: Finance, Administration & Banking Services at Afreximbank. Afreximbank will finance a portion of the project’s preliminary activities under the deal. Which will represent the deployment of the nation’s first Floating Liquefied Natural Gas facility. The multilateral financial organization will use its varied portfolio to provide end-to-end solutions for the project’s construction. And the committed funds will help to reduce risk and make the project more bankable.

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Afreximbank to serves as the lead financer for the Floating Liquefied Natural Gas facility in Nigeria

According to a press release issued by Afreximbank, in addition to providing funds for the project preparation facility, Afreximbank serves as the Lead Financer. And, as such, has been appointed as the Financial Advisory and is to be appointed Mandated Lead Arranger once the Project Attains Bankability.

The statement added that, “Afreximbank has been crucial in structuring the transaction to achieve optimal returns. And debt size through its Financial Advisory Mandate. It has also been helpful in finding equity partners to invest in the project on favorable terms.”

As noted earlier, Prof. Benedict Oramah, President of the Board of Directors of Afreximbank, said, “The Bank has been recognized by member countries as a systemic institution. As evidenced by its accreditation by the AU and its choice by the AU as a preferred partner in implementing some AU strategic initiatives. This recognition is a result of the Bank’s consistent and prudent response to member countries’ needs during difficult times. As well as its capacity to manage exposures prudently.”