The African Export-Import Bank (Afreximbank) in Brazzaville signed an agreement to provide a $300Million facility to Trident OGX Congo in a transaction expected to raise the Republic of Congo’s crude oil production by an estimated 30 per cent.
The reserve-based lending facility will enable Trident OGX Congo to implement a capital expenditure programme to ramp-up crude oil production from the Mengo-Kundji-Bindi II (MKB II) oil fields
Under the terms of the agreement, signed by Ibrahima Bagarama, Regional Chief Operating Officer – Central Africa, for Afreximbank, and John Chisholm and Olivier Okota, member of the Board of Directors and Director General of Trident OGX Congo respectively, Trident OGX Congo, a fully owned subsidiary of Trident OGX International Pte Ltd, Singapore, will use the proceeds of the facility to partially finance and kickstart a seven-year development programme on the MKB II permit area located in the coastal plains between Pointe Noire, the foothills of Mayombe mountains and the border with Angola’s Сabinda enclave.
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 per cent and to add a considerable number of jobs to the country’s economy.
“This important project which promises to bring investment of about $1.5Billion into Congo’s oil and gas sector, will generate significant revenues that will enable the Government create more jobs and provide more socio-economic infrastructure for the people”, remarked Benedict Oramah, President and Chairman of the Board of Afreximbank,.
“We are also pleased that operations at the Mengo-Kundji-Bindi II oil fields will be conducted in adherence with best practices of environmental standards, by hydraulic fracturing process”, he said.
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.