Oando Plc has partnered with AfrexInsure, the insurance subsidiary of the African Export-Import Bank (Afreximbank), to strengthen its risk management strategy. Afreximbank announced the agreement in a statement from Cairo on Monday.
Enhancing Risk Management in Energy
This partnership allows AfrexInsure to provide critical insurance coverage for Oando’s Nigerian operations, ensuring the company’s investments remain protected. According to Afreximbank, the collaboration will improve Oando’s ability to manage risks, support sustainable energy development, and reinforce regional economic stability.
Jonas Mushosho, CEO of AfrexInsure, emphasized the significance of the deal. “This partnership will promote local content in Africa’s oil and gas industry,” he said. He also highlighted that it would help retain insurance premiums within Africa, strengthening the continent’s financial sustainability and insurance sector.
Strengthening Oando’s Growth
Oando and Afreximbank have a history of working together on major financing initiatives. In August 2023, Afreximbank helped secure $650 million to fund Oando’s acquisition of the Nigerian Agip Oil Company from Eni. This acquisition is expected to increase Oando’s production capacity to 100,000 barrels of oil equivalent per day.
In June 2024, Oando contributed $550 million to a $925 million financing facility arranged by Afreximbank. This facility, known as “Project Gazelle,” is a $3.3 billion structured crude oil-backed finance deal sponsored by the Nigerian National Petroleum Company Limited (NNPC).
A Shared Vision for Africa’s Energy Future
Wale Tinubu, Oando’s CEO, expressed confidence in the partnership. “We have a strong relationship with Afreximbank, which has supported our energy vision in Africa with financing, guidance, and advisory support,” he said. He added that following Oando’s recent acquisition, a customized risk management approach is crucial. “We believe our collaboration with AfrexInsure will ensure the adequacy and effectiveness of our risk management strategy,” Tinubu stated.
Oando is listed on both the Nigerian and Johannesburg Stock Exchanges. The company reported an 8.6% rise in net profit, reaching N65.5 billion in 2024. With this new agreement, Oando is set to further solidify its position in Africa’s energy sector while managing risks effectively.
