Vitol, Shoreline trade oil for financing

LAGOS, January 18, 2018 – Vitol Group has agreed to pay Shoreline Group USD 530 million to finance the development of an oilfield in exchange for access to part of the output, the Nigerian company announced Thursday.

Shoreline is hoping to boost the production from its operated OML 30 from 55,000 bopd to 80,000-100,000 bopd and will also use part of the sum to refinance existing debt.

“The funds will be used to refinance existing debt and provide us with working capital to expand production,” CEO Kola Karim told Bloomberg. “As part of the funding arrangements, Shoreline will work with Vitol to market the crude, and in the development of its export logistics capabilities.”

Farallon Capital Management and lenders Ecobank Transnational, Fidelity Bank, Union Bank and FCMB Group are also providing part of the financing.

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