The African Export-Import Bank (Afreximbank) in Brazzaville signed a $300 million reserve-based lending facility deal with Trident OGX Congo to raise crude oil production in the central African nation.
The facility will enable Trident OGX Congo to implement a capital expenditure program to ramp up crude oil production from the Mengo-Kundji-Bindi II (MKB II) oil fields.
The loan agreement was signed by the bank’s Regional COO Ibrahima Bagarama, and Director General of Trident Olivier Okota on Monday.
The gas company – a subsidiary of Trident OGX International Pte Ltd Singapore – will use the proceeds of the facility to partially finance and kickstart a seven-year development program on the MKB II permit area, per the terms of the deal.
Upon completion of the field development plan, the transaction is expected to increase the Republic of Congo’s crude oil production level by up to 30%.
President of Afreximbank Benedict Oramah has called it an important project that promises to bring investment of about $1.5 billion into Congo’s oil and gas sector.
It “will generate significant revenues that will enable the Government to create more jobs and provide more socio-economic infrastructure for the people,” he added.
In addition to the Trident Group, Société Nationale des Pétroles du Congo and Orion Group also have shareholding in the asset to be operated by Trident OGX Congo.