Lekoil agrees advance payment facility with Shell

LEKOIL 2Lekoil have agreed an advance payment facility with Shell. (Image source: Lekoil)Lekoil Oil and Gas Investments Limited has agreed an advance payment facility with Shell Western Supply and Trading Limited

Lekoil, the oil and gas exploration, development and production company with a focus on Africa, announces that its wholly owned subsidiary, Lekoil Oil and Gas Investments Limited, has agreed an advance payment facility with Shell Western Supply and Trading Limited, a member of the Royal Dutch Shell group of companies, in accordance with which Shell Western will provide LOGL with a facility of US$15 mn.

The facility has a maturity of three years and is repayable quarterly following a six-month moratorium with a market margin over LIBOR.

Lekan Akinyanmi, Lekoil's CEO, said, "We are pleased to be working with Shell as a commercial and financial partner to enable the continued development at Otakikpo.  The facility is a strong endorsement of our commercial production and secures funding which is non-dilutive to our shareholders.  We believe that this relationship with a globally recognised O&G major will complement Lekoil in its long-term growth and aspirations."

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