(Ecofin Agency) - New Age has secured a $425 million loan facility from Africa Finance Corporation (AFC) to finance a planned production increase on its existing fields and increase its portfolio.

AFC will initially give out $350 million of the facility directly, with an accordion feature for further $75 million of capital afterwards.

AFC is investing $75 million in the deal. The investment will let New Age refinance a standing loan facility and develop projects in Nigeria and the Republic of Congo, and also to increase operations in several other African countries.

With this loan, the company can increase throughout the continent.

New Age who is the technical operator of the Aje field in OML 113 in Nigeria, has reached first oil production with a target of 11,000 bpd, thereby making Lagos state join the league of oil producing state. The Aje field is also expected to be a major gas supplier to Lagos power and industrial projects.

Furthermore, New Age has reached first production within the past two years at the Litchendjili and Nene marine fields in offshore Congo-Brazzaville.

“While the recent volatility in the oil industry has been challenging, AFC believes the current market provides opportunities for long-term investors across the value chain. The lenders in the consortium are also working with New Age to further enhance the company’s existing robust corporate governance,” Andrew Alli (photo), President and CEO of AFC told Oil and Gas 360.

Anita Fatunji