Lekoil agrees advance payment facility with Shell

LEKOIL 2Lekoil 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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