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."