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Afreximbank signs US$100M finance agreement with British trading firm to support its contract to market Guyana’s oil
Kaieteur News- On November 5, 2024 the African Export-Import Bank (Afreximbank) signed an agreement for a US$100-million Revolving Trade Finance Facility in favour of British oil trader JE Energy Limited to support its contract to market Guyana’s share of crude from the Stabroek Block operations.
Last month, this publication had reported that the two United Kingdom (UK) companies that were previously contracted to market Guyana’s share of crude from the Stabroek Block operations –won new contracts with the Government of Guyana (GoG).
JE Energy was contracted as the marketer of oil coming from the Liza-1 platform which uses the Liza Destiny Floating Production Storage and Offloading (FPSO), while BB Energy was contracted as the marketer for oil from the Liza-2 and Payara platforms which use the Liza Unity and Liza Prosperity FPSOs, respectively.
FPSO Prosperity
According to the Afreximbank, under the terms of the agreement signed on the sidelines of the African Energy Week, JE Energy Limited, which has been awarded contracts to lift and market crude oil from Guyana, shall utilize the two-year facility to finance the purchase and sale of crude oil from Guyana’s Ministry of Natural Resources for onward sale to reputable international offtakers.
“Issued in the context of Afreximbank’s drive to grow business opportunities in its member countries in the CARICOM region, the facility is expected to help ensure that Guyana is able to trade internationally and to benefit from its natural resources while earning much needed foreign currency,” the bank said.
Signing the agreement on behalf of Afreximbank was Mrs. Helen Brume, Director & Global Head of Project & Asset Based Finance, while Mr. Joseph Ilebode, Group Managing Director, JE Energy Limited, signed for his company.
Mrs. Helen Brume, Director, Project & Asset Finance (right) and Mr. Joseph Ilebode, Group Managing Director, JE Energy Limited (left), signing the agreement, witnessed by colleagues from both institutions.
Ms. Gwen Mwaba – Managing Director, Trade Finance & Correspondent Banking at Afreximbank commented: “Afreximbank is thrilled to support JE energy in their recent contract with the Republic of Guyana to facilitate the export of the country’s crude oil. This partnership not only highlights our commitment to fostering sustainable energy solutions in Africa and beyond but also strengthens regional trade ties. We believe that supporting innovative companies like JE Energy is crucial for unlocking economic potential and driving growth in the energy sector. Together we can contribute to a prosperous future for Guyana and the wider region.”
Mr. Joseph Ilebode, Group Managing Director at JE Energy commented: “We are very grateful to Afreximbank for the facility granted to JE Energy Ltd. It is a clear demonstration of Afreximbank’s willingness to support capable partners in driving energy solutions and unlocking the potential in the sector. We strongly believe this will go a long way to support JE Energy’s plan not only in Guyana but across the African continent.”
Guyana’s Ministry of Natural Resources had disclosed that BB Energy Trading Limited was awarded the contract to market crude from the Liza Unity and Prosperity FPSOs, while JE Energy was awarded the contract to market crude from the Liza Destiny FPSO.
Notably, the duration of this contract will be for 12 months commencing in 2024. The ministry disclosed too that the combined premium per barrel to be received by the GoG from these two companies for the crudes from these three FPSOs amounts to US$1.85, reflecting a substantial 93% increase compared to the US$0.96 premium secured in the previous period (2023- 2024).
(Afreximbank signs US$100M finance agreement with British trading firm to support its contract to market Guyana’s oil )
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